Fannie and Freddie made some key updates in the “Notes” section of Appendix D. These “Notes” relate to condition and quality ratings. The reason for this update, is inconsistencies the GSE’s found in appraisal reports in the interpretation of condition and quality ratings.
Initially, the UAD condition and quality ratings appeared to be a simple transition from “Average” and “Fair” to a defined numbering system, however; now that the UAD has been in effect for some time, many appraisers are finding out that the devil is in the details. In the second webinar of the free ACI UAD series, we will highlight a variety of condition and quality ratings nuances that can easily be misunderstood when interpreting and applying the definitions.
For example, there are key differences between a C1 and C2 rating. A C1 rating can only be accurately applied to an improvement if it’s been newly constructed from the ground up with a new foundation. A dwelling on an existing foundation that has been gutted and totally renovated cannot be rated C1. And what about that “model” home that’s been used as a sales office? Is that still a C1 or is it a C2? These questions and more will be presented in this webnar.
Don’t miss out next month when we start our new webinar series because understanding the “details” of the UAD can help you avoid that “devil” of inefficiency. See you there.