II.D.11 Market Conditions Addendum, Fannie Mae Form 1004MC/Freddie Mac Form 71, Instructions Applicable to FHA Appraisals (09/14/15)

© HUD Single Family Housing Policy Handbook 4000.1

a. Standard (09/14/15)

The Appraiser must complete the Fannie Mae Form 1004MC/Freddie Mac Form 71, Market Conditions Addendum to the Appraisal Report, for all appraisal assignments. The analysis and valuation of FHA-insured Properties must properly analyze and address market trends in the subject’s market. Whether these trends are positive, neutral or negative, proper data collection and reporting are imperative components of a complete market conditions analysis; this is most important where markets are demonstrating negative trends.