Uniform Residential Appraisal Report (URAR)

In March 2005, Fannie Mae released eleven report forms that they had been developing for several years. This Seminar is about one of the eleven new forms - the "Uniform Residential Appraisal Report Fannie Mae Form 1004, March 2005" for an appraisal of a one-unit property (including an individual unit in a PUD project) based on an interior and exterior property inspection. The form also carries the "Freddie Mac Form 70" designation.

This URAR is not simply an update of what I am calling the "Clasic 6/93 URAR" to distinguish it from the new "2005 URAR". This new 2005 URAR is not an all purpose form like the CLASSIC 6/93 URAR. The 2005 URAR is a form which has been specifically designed to meet Fannie Mae's and Freddie Mac's need for an appraisal where the "Intended Use" is only "for the lender/client to evaluate the property for a mortgage finance transaction."

Each lesson in the seminar includes several sections. First, Reading Assignments and Learning Objectives are listed, which are followed by an Overview of the Topics. After this, I go through, topic-by-topic, and list important USPAP, Fannie Mae and Freddie Mac Guidelines. I have added Comments that help explain the URAR form that the instructor can select from to share with the students. Where appropriate, I have also added Examples, Sample Problems, and Optional Discussion Questions to allow the instructor an opportunity to explain in greater depth the implications of some of the items on the URAR.

Objectives:

1. Train appraisers who are already familiar with the generally-accepted principles of real estate appraising to make an appraisal of a single-family residence on the Uniform Residential Appraisal Report Form (URAR).
2. Familiarize students with the Fannie Mae and Freddie Mac guidelines that apply to the URAR.
3. Familiarize appraisers with those provisions of the Uniform Standards of Professional Appraisal Practices (USPAP) that directly relate to the URAR.
4. Clarify the duties and responsibilities of trainees, appraisers, supervisory appraisers, and reviewers.
5. Familiarize the student with the requirements for reporting apparent environmental hazards.

Course Outline

Introduction

-- PAGE 1 --
   • Page 1 Text
   • Subject
   • Contract
   • Neighborhood
   • Site
   • Improvements

-- PAGE 2 --
   • Page 2 Text
   • Sales Comparison Approach
   • Reconciliation

-- PAGE 3 --
   • Page 3 Text
   • Additional Comments
   • Cost Approach
   • Income Approach
   • PUD Information

-- PAGE 4 --
   • Page 4 Text
   • Instructions - Page 4
   • Statement of Assumptions and Limiting Conditions

-- PAGE 5 & 6 --
   • Page 5 Text
   • Appraiser's Certification
   • Page 6 Text
   • Appraiser's Certification Continued
   • Supervisory Appraiser's Certification
   • Appraiser - Signature and Information

Summary
Appendix