August 01, 2018
Fannie Mae Drops Form 1004MC, the GSE Reveals at AI Annual Conference
Fannie Mae is discontinuing the use of Form 1004MC (Market Conditions), the government-sponsored enterprise announced July 30 at the Appraisal Institute Annual Conference in Nashville, Tennessee. The GSE is expected to officially announce the change when it releases its updated Selling Guide in the coming weeks.
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.
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.
AI will monitor the situation and report new developments when they are announced.