Fannie recently announced in the Selling Guide Announcement SEL-2014-16 that the 15% net and 25% gross adjustment guidelines were eliminated. Fannie Mae also clarified their expectations for the appraiser to analyze the market for competitive properties and provide appropriate market based adjustments without regard to limits on the size of the adjustments.
After much discussion and contemplation, SAMCO has made the decision to retain the former Fannie 15% net and 25% gross adjustment guideline. The reason is clear, to protect our client-banks from 'cram-downs' by Fannie/Freddie. To place the final decision with a Fannie/Freddie reviewer as to whether the appraiser’s explanation is adequate is not an acceptable risk that SAMCO is willing to let our clients take.
I hope the SAMCO appraisers can appreciate this reason to protect your community bank. Maximum 15% net and 25% gross adjustments are still the requirement for SAMCO appraisal requests.
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