Fannie Mae is discontinuing the use of Form 1004MC (Market Conditions), the government-sponsored enterprise (GSE) announced at the 2018 Appraisal Institute (AI) Annual Conference in Nashville, Tenn. The official change is in the August version of its Selling Guide.
Form 1004MC was released in November 2008, and from the start many appraisers said they found its use inappropriate for many market situations and conditions. Members of the AI Government Relations Committee expressed this opinion to Fannie Mae during recent discussions on ways the GSE could improve its policies and procedures, the announcement states.
Reporting market trend activity will remain an important undertaking for appraisers and they will continue to do so even without the requirement to complete Form 1004MC.
Freddie Mac has yet to make a similar announcement about discontinuing use of 1004MC, but the move by Fannie Mae may compel a similar policy change to maintain competitive posture.