Appraisal Review Workshop Part 2 - Presentation

APPRAISAL REVIEW
WORKSHOP
"INTENSIVE STUDY OF
THE APPRAISAL"
CampusMortgage®
Presidential Circle
4000 Hollywood Blvd. Suite 555-South
Hollywood, FL 33021
1-800-423-1510
1
DISCLAIMER
The views and opinions expressed in this course are those
of the instructor and do not necessarily reflect any official
CampusMortgage® policy or position. Examples of analysis
performed within the course content are only examples.
They should not be utilized in real-world application as they
are based only on very limited and dated open source
information. Assumptions made within the analysis are not
reflective of the position of CampusMortgage®. Nothing
contained in this course should be considered legal
advice. Due to ongoing changes to mortgage regulations
and guidelines, the information presented in the webinars,
as well as the course materials downloaded as PDF files, is
time sensitive and subject to change without notice. This
training is based solely on Agency Guidelines. Each
Investor and/or Lender may have additional overlays,
which you need to be aware of.
CampusMortgage®. ALL RIGHTS RESERVED. Without the

prior written permission of CampusMortgage, no part of
this work may be used, reproduced or transmitted in any
form. 2
TABLE OF CONTENTS
 Subject Section – Pg. 4
 Contract Section – Pg. 5
 Neighborhood Section – Pg. 6
 Site Section – Pg. 7
 Improvement Section – Pg. 9
 Property Condition – Pg. 12
 Sales Comparison – Pg. 14
 Appraisal Deficiencies – Pg. 18
 Practice Quiz – Pg. 19
3
SUBJECT SECTION
 Identifies the subject with complete

address and legal description.
SOURCE: FNMA Selling Guide: B4-1.3-02: Subject and Contract Sections of the Appraisal Report
(04/15/2014) 4
https://www.fanniemae.com/content/guide/selling/b4/1.3/02.html
CONTRACT SECTION
 Did / Did not analyze contract for sale
 Is there is any financial assistance

provided?
 Indicate if the seller is the owner of record
 Enter contract price
SOURCE: FNMA Selling Guide: B4-1.3-02: Subject and Contract Sections of the Appraisal Report
(04/15/2014) 5
NEIGHBORHOOD SECTION
 Neighborhood boundaries
 Characteristics
 One Unit Housing
 Present Land Use
SOURCE: FNMA Selling Guide: B4-1.3-03: Neighborhood Section of the Appraisal Report (08/07/2018)
https://www.fanniemae.com/content/guide/selling/b4/1.3/03.html 6
SITE SECTION
 Zoning
 Highest and Best Use
 Site Utilities
SOURCE: FNMA Selling Guide: B4-1.3-04: Site Section of the Appraisal Report (06/05/2018) 7
SITE SECTION
 Off-Site Improvements
 Special Flood Hazard Areas
SOURCE: FNMA Selling Guide: B4-1.3-04: Site Section of the Appraisal Report (06/05/2018)
8
IMPROVEMENTS SECTION
 General Description
 Foundation
 Exterior Description
 Interior
 Attic, Heating, Amenities, Car Storage
 Appliances, Finished Area
SOURCE: FNMA Selling Guide: B4-1.3-05: Improvements Section of the Appraisal Report (06/05/2018)
2-4 Unit Example
PROPERTY CONDITION &
QUALITY OF CONSTRUCTION SECTION
• Property Condition / Ratings

 C1 - C5
 C6 - unacceptable to FNMA
• Definitions of Not Updated, Updated, etc.

• “As is” vs “Subject to”
• Quality of Construction Rating
SOURCE: FNMA Selling Guide: B4-1.3-06: Property Condition and Quality of Construction of the
Improvements (04/15/2014 12
PROPERTY CONDITION &
QUALITY OF CONSTRUCTION SECTION
SOURCE: FNMA Selling Guide: B4-1.3-06: Property Condition and Quality of Construction of the
Improvements (04/15/2014 13
SALES COMPARISON SECTION
Data & Verification Sources of Comps
Prior Sales History
SOURCE: FNMA Selling Guide: B4-1.3-07: Sales Comparison Approach Section of the Appraisal Report
(04/15/2014) 14
SALES COMPARISON SECTION
Comps
SOURCE: FNMA Selling Guide: B4-1.3-07: Sales Comparison Approach Section of the Appraisal Report
(04/15/2014) 15
ADJUSTMENTS OF COMPS
Analysis of Adjustments
16
ADJUSTMENTS OF COMPS
Cost Approach
Income Approach
17
APPRAISAL DEFICIENCIES
• Contact the appraiser to address the

deficiencies,
• Obtain a desk review or a field review of the

original appraisal, or
• Obtain a new appraisal of the subject

property.
The lender can return the appraisal report to the

appraiser that completed the assignment,
identify the deficiencies found, and provide
justification for requesting correction of the
deficiencies the lender believes make the report
unreliable.
SOURCE: FNMA Selling Guide: B4-1.3-12: Quality Assurance (01/30/2018)

18
APPRAISAL REVIEW
WORKSHOP
PRACTICE QUIZ
19
QUESTION 1
WHAT SECTION OF THE APPRAISAL

REFLECTS IF A PROPERTY IS
“VACANT”?
Answer:
Subject Section
20
QUESTION 2

INDICATES IF THE SELLER IS THE
OWNER OF RECORD?
Answer:
Contract Section
21
QUESTION 3

INDICATES “ PRESENT LAND USE”?
Answer:
Neighborhood Section
22
QUESTION 4

INDICATES “ ZONING”?
Answer:
Site Section
23
QUESTION 5

INDICATES THE EXTERIOR
DESCRIPTION?
Answer:
Improvement Section
24
QUESTION 6
WHAT DOES A C-6 RATING MEAN

FOR A PROPERTY WITH FANNIE
MAE?
Answer:
Unacceptable Property
Condition to FNMA
25
QUESTION 7
WHERE IS THE PRIOR SALES

HISTORY FOR THE SUBJECT
PROPERTY?
Answer:
Sales Comparison Section
26
QUESTION 8
WHERE IS THE “OPINION

OF SITE VALUE”?
Answer:
Cost Approach Section
27
QUESTION 9
WHERE IS THE APPRAISED

VALUE LOCATED?
Answer:
Reconciliation Section
28
QUESTION 10
WHERE CAN I LOCATE THE

COMPARABLES?
Answer:
Sales Comparison Section
29
THANK YOU!
30

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APPRAISAL REVIEW

CampusMortgage®. ALL RIGHTS RESERVED. Without the

 Subject Section – Pg. 4

 Contract Section – Pg. 5

 Neighborhood Section – Pg. 6

 Site Section – Pg. 7

 Improvement Section – Pg. 9

 Property Condition – Pg. 12

 Sales Comparison – Pg. 14

 Appraisal Deficiencies – Pg. 18

 Practice Quiz – Pg. 19

 Identifies the subject with complete

 Did / Did not analyze contract for sale

 Is there is any financial assistance

 Indicate if the seller is the owner of record

 Enter contract price

 One Unit Housing

 Present Land Use

 Highest and Best Use

 Special Flood Hazard Areas

 Attic, Heating, Amenities, Car Storage

 Appliances, Finished Area

2-4 Unit Example

• Property Condition / Ratings

• Definitions of Not Updated, Updated, etc.

Data & Verification Sources of Comps

Prior Sales History

• Contact the appraiser to address the

• Obtain a desk review or a field review of the

• Obtain a new appraisal of the subject

The lender can return the appraisal report to the

SOURCE: FNMA Selling Guide: B4-1.3-12: Quality Assurance (01/30/2018)

WHAT SECTION OF THE APPRAISAL

WHAT SECTION OF THE APPRAISAL

WHAT SECTION OF THE APPRAISAL

WHAT SECTION OF THE APPRAISAL

WHAT SECTION OF THE APPRAISAL

WHAT DOES A C-6 RATING MEAN

WHERE IS THE PRIOR SALES

Sales Comparison Section

WHERE IS THE “OPINION

Cost Approach Section

WHERE IS THE APPRAISED

WHERE CAN I LOCATE THE

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