Effective 04/01/2009 Fannie Mae, Freddie Mac and FHA/HUD are requiring the completion of the new Form 1004MC.71 Market Conditions Addendum in connection with all one to four-unit appraisals.

"The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood.  This is a required addendum for all appraisal reports with an effective date on or after April 1, 2009.  Fannie Mae 1004MC/Freddie Mac 71, March 2009."

Links to learn more:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0830.pdf

http://www.freddiemac.com/learn/ch_ind/

Forms which require the 1004MC Addendum including all versions completed for FHA and VA:

• 1004 URAR
• 1025 2-4 Unit
• 1073 Condominium
• 2055 interior and Exterior versions
• 2075 Exterior Condominium

In order to ensure greater transparency and accuracy of appraisals performed for FHA-insured financing, FHA will adopt the Market Conditions Addendum (Fannie Mae Form 1004MC/Freddie Mac Form 71, released November 2008).  For all appraisals of properties that are to be security for FHA-insured mortgages and that are performed on or after April 1, 2009, the appraisal must include the Market Conditions Addendum.

We will be charging an additional $50.00 on each appraisal for this form.