Market Conditions Addendum (Form 1004MC) Requirements

  Form 1004MC is required on all appraisals submitted to Fannie Mae and Freddie Mac beginning April 1, 2009. This form requires statistical information of properties comparable to the appraised property for the previous year broken into three time periods, as well as analysis to evaluate whether overall trends are increasing, decreasing or stable. Additional subjective information is also required, such as whether foreclosures are a factor, whether or not seller-paid financial assistance is prevalent, etc.

The NTREIS MLS vendor has provided us with an Excel spreadsheet that can be used to calculate all statistical data required on the 1004MC. (The spreadsheet can be accessed by clicking here.) A custom report template has been created for your use in NTREIS Listings. This report includes the core fields needed to compute the 1004MC statistics. Appraisers will use the regular search functions to return a list of all comparable properties within the last year and then export those results using this grid to specify the fields to export. The appraiser will then copy the exported data and paste it into the spreadsheet where all calculations are performed instantly.

A spreadsheet was chosen rather than a canned report for a variety of reasons:

• The appraiser community itself has embraced this approach.

• Appraiser feedback indicated that the ability to specify any search criteria in defining comparable properties was necessary and that the ability to view those comparables in detail was of value in performing the appraisal.

• This approach provides an efficient way for the appraiser to save the comparable data used in the appraisal for record-keeping.

• It also provides an efficient way to quickly address and correct any calculation changes which may be needed.

 Please click here for more information and detailed instructions on how to use the spreadsheet in NTREIS Listings.