Under Fannie Mae's Selling Guide, an appraiser's neighborhood boundary entry reads only "See attached map." What correction is needed?
Correct Answer
D) Describe north, south, east and west limits, not a map alone
Fannie Mae wants neighborhood boundaries clearly delineated using north, south, east and west, and appraisers should not reference a map or other addendum as the only description. Boundaries may include streets, legally recognized lines or natural features, but they are not limited to legal lines or a set radius. A map may still support the description; it simply cannot be the only one.
Why This Is the Correct Answer
Option D is correct because Fannie Mae asks for boundaries clearly delineated using north, south, east and west and says a map or addendum should not be the only example of the boundaries. Adding a written outline cures the problem while the map can stay as support.
Why the Other Options Are Wrong
Option A: Redraw the limits to match legally recognized neighborhood lines
Option A would force the limits onto legally recognized neighborhood lines, but such lines are just one possible boundary along with streets, waterways and other natural features.
Option B: Redraw the limits as a set radius around the subject property
Option B would redraw the limits as a set radius, but a neighborhood is the area subject to the same influences, which a fixed circle does not identify.
Option C: Delete the map, since maps are not permitted in the report
Option C deletes the map as if maps were not permitted, but the guide only says a map should not be the sole description; a map can still support the written boundaries.
Four directions, not one map
Picture a compass rose written into the report: north, south, east and west each get a named limit, and the map is just a picture of them.
How to use: Use this when a question asks what a compliant neighborhood boundary description looks like.
Exam Tip
A map is acceptable as support; the problem is a map used as the only description of the boundaries.
Common Mistakes to Avoid
- -Thinking maps are banned from the report
- -Using a fixed radius instead of the area of common influences
- -Assuming only legal neighborhood lines may serve as boundaries
Concept Deep Dive
Analysis
The question tests how Fannie Mae expects neighborhood boundaries to be reported. The defect here is relying on a map as the sole description, so the fix is a written outline of the limits in each direction.
Background Knowledge
Fannie Mae requires an objective neighborhood analysis that identifies boundaries, characteristics and factors affecting value and marketability. Boundaries may include streets, legally recognized boundaries, waterways or other natural boundaries that separate one neighborhood from another.
Real-World Application
A reviewer returns a report whose boundary field says only "see map." The appraiser revises it to name a highway on the north, a river on the south and two arterial streets on the east and west, keeping the map as an exhibit.
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