The 1004MC-71 INDUSTRY UPDATE
David A. Braun, MAI, SRA (Written 2009)Part 1; AND, THEY ARE OFF!
April first has come and gone; and the mandate to use the 1004MC-71 form (MCF) isfirmly in place. Much like in a horse race appraisers are accelerating out of the blocks-with a few still stuck in the gate. The form appears to have been primarily designed byFannie Mae, with some input from Freddie Mac, and the Appraisal Institute. The intentof this writing is to discuss the progress of appraisers to adapt to the form and to begina converging of the various opinions of how the analysis should be completed.The players in this scenario are the designers of the MCF, solution providers,appraisers, and reviewers. My personal expertise is as one of the solution providers,but also as an appraiser and fee reviewer. I have 30+ years of appraisal experience,am a certified USPAP instructor, the author of APPRAISING IN THE NEWMILLENNIUM, Due Diligence & Scope of Work, designed and developed the USLDocumenter II software, and the Regression Plus; for Real Estate Professionals. I didnot help design the MCF, nor have I interviewed those that did.I feel the MCF is too restrictive (perhaps to keep it one page), but otherwise I believe itis a positive progression in the evolution of the appraising industry. Now that mostappraisers have access to spreadsheets they can assemble and analyze hundreds ofrecords at one time. This is a stock pile of raw resources that appraisers can no longerafford to ignore. In fact, appraisers like in every other industry in America must exploitevery asset at their disposal and evolve their research and development to a higherdegree of efficiency. Appraisers should begin to grasp the MCF as a tool to help themand not a hurdle to jump over. In this new millennium...”appraisers must evolve fromform-fillers and template masters to problem solvers.”
At this time most appraisers aresimply trying to fill out the form with little recognition of its potential role in the appraisalprocess. Over time, this will change and appraisers will recognize that when a goodmarket condition analysis is performed, the appraisal is half way complete. In the meantime industry leaders such as instructors, writers, and reviewers should keep poundingthe message that the MCF is a viable tool that can provide significant insight and lead toa credible appraisal. I have found that many appraisers are hung up on how get theirMLS search results exported to a spreadsheet and if necessary converting that data toa standard spread sheet format which will allow for organization of the data and