Fun insanity — time adjustment requirements made simple. A concise market conditions guide and summary. Editor’s Note: This is part 7 of a new series on Time. Get caught up here. Let’s outline the new GSE requirements: Time “adjustments” will be a required field, even if exactly zero! (Zero is a number.) Time-series analysis is […]
Time “adjustment” is not really about time (or so they say). It’s about changed market conditions since the time of the comparable sale. This wording works fine for legacy appraisal practices. The modern, data-centric, data science approach is clear that the market conditions are measured at points in time (or a continuum of time). Thus, […]
It is clear: market analysis and time adjustments are more important than ever, and the appraisal and review requirements are critical to responsible valuation, compliance, and risk management. Time adjustments and market analysis was the topic presented in our TYN2K Webinar January 15, 2025. Fannie Mae’s Lyle Radke was our presenter, followed by a two-hour […]
Time adjustments are now required by Fannie Mae and Freddie Mac. Time adjustments were previously required “when necessary.” Now a “market conditions” adjustment is required on every appraisal. This means that even if personal judgment says the subject market is “stable,” an analysis must be performed to arrive at the zero adjustment conclusion. An FHFA (Federal Housing Finance […]
We now consider the second “time adjustments” method noted in the FHFA paper (24-07). It, too, is noted as being “commonly” used in appraisals. The first method we reviewed was “paired sales”. Now we look at the second method, called “grouped data.” This “related technique, grouped data analysis, involves grouping data by an independent variable […]