UAD 3.6 discussion

[J Grant]

A savvy purchaser is rarely getting a loan that needs an appraisal or a waiver but more people have probably been hurt by low appraisals than high ones. A low appraisal rarely saves a buyer money it just requires him to come out of pocket with his hard earned cash. In 38 years never had anyone thank me for coming in low and more than a few threaten to file a complaint.

Appraisers should not use terms like "coming in low." The $ amount is the supported market value opinion. The OMV might be higher than, lower than, or the sme $ amount as a sale contract price.
We do; "come in low" to get thanks from anyone.
The deal can be renegotiated in price or the buyer can come up with cash. Their choice. And some deals might die. Parties can do whatever they want.

 

[alebrewer]

I never heard of them sick and tired of it - the addendum page was the last page and clearly marked. Now they will really be sick and tired as they are forced to hunt down comments in various drop down sections with so much detail about minutes it will be hard to separate what is really important to value vs some inane factoid about a HERS rating or window thickness.

They need a blank page for narrative in this because some comments do not neatl fit into a category.

He's right, J. Just because you clearly label your addenda does not infer that everyone else does the same. Underwriters literally spend hours searching for required commentary - be it ANSI statements, FHA statements, revision statements. Folks just throw those comments anywhere in the report. Sure - Control F works, but you shouldn't have to do that...

 

[chad hampton]

It’s not appraisers that created those forms or require all those lines to be filled out. When I was starting in the very early 2000s I didn’t fill out half the lines on a 1004. My mentor said they’re worthless not necessary and nobody cares about. He was right.

I gave the user what they wanted. Then things changed and we couldn’t even upload reports unless every line had some sort of keystroke in it. We were told that’s what the user wanted. Now I’m hearing that’s not what the user wants?

 

[alebrewer]

And it isn't just Alamode. At this point I don't think ACI, Bradford, or SFREP have anything out."

Talked to ACI yesterday - they said they would be deploying the new workbench by 9/1. Highly doubtful.

 

[timd354]

It’s not appraisers that created those forms or require all those lines to be filled out. When I was starting in the very early 2000s I didn’t fill out half the lines on a 1004. My mentor said they’re worthless not necessary and nobody cares about. He was right.

I gave the user what they wanted. Then things changed and we couldn’t even upload reports unless every line had some sort of keystroke in it. We were told that’s what the user wanted. Now I’m hearing that’s not what the user wants?

The biggest users of residential appriasal reports (Fannie & Freddie) are obviously not completely satsified with the apprasial reports that they are receiving and thus are changing their forms. This is the first major change to the GSE appraisal process since the UAD was rolled out over a decade ago. Like it or not, it is simply not realistic to expect that things will always remain the same, especially after 10+ years of no major changes to the forms or the process. Whether the changes turn out to be good or bad remains to be seen, but change is coming either way.

 

[Non Sequitur]

Talked to ACI yesterday - they said they would be deploying the new workbench by 9/1. Highly doubtful.

What a mess. Even if they hit the 9/01 release date, that gives an indie appraiser how long to work through an industry changing workflow?

Another issue indie appraisers aren't going to like, if your clients aren't talking about fees that's because there are no plans to change their fee structure. And the whispers I'm hearing are the large Staff/AMC hybrid companies (RSDS, Accurity, True Footage, Class) and the smaller tag along wanna-be firms aren't planning on raising fees in an effort to gain market share from anyone who does, which is mostly indie appraisers. Someone I trust runs a national panel was approached with a "Our fees are staying the same" pitch. Good luck ladies and gents, tough times ahead.

 

[chad hampton]

I’ve never listed F or F as a client on any of the thousands of reports I’ve done over the last 24 years. If they want to be a client, they need to get in on the front end. It’s a little odd how they can come in two years after the fact and say, the appraisal was deficient. Don’t they have representatives working on the front end of things or is everything reactive?

 

[chad hampton]

What a mess. Even if they hit the 9/01 release date, that gives an indie appraiser how long to work through an industry changing workflow?

Another issue indie appraisers aren't going to like, if your clients aren't talking about fees that's because there are no plans to change their fee structure. And the whispers I'm hearing are the large Staff/AMC hybrid companies (RSDS, Accurity, True Footage, Class) and the smaller tag along wanna-be firms aren't planning on raising fees in an effort to gain market share from anyone who does, which is mostly indie appraisers. Someone I trust runs a national panel was approached with a "Are fees are staying the same" pitch. Good luck ladies and gents, tough times ahead.

Large appraisal mills like those you mention never raise their fee. That’s company policy. I knew a guy after the crash who managed a region for one of those big companies at the time. This was before AMC‘s decided they could skirt laws and regulations and become appraisal companies too. He was told by the chief appraiser that he is to accept any fee and never go back and ask for an increase. And then it was his job to find some poor newly admitted certified appraiser that was willing to do it. So I’m sure that’s the same policy. All of these companies have.

 

[timd354]

What a mess. Even if they hit the 9/01 release date, that gives an indie appraiser how long to work through an industry changing workflow?

Another issue indie appraisers aren't going to like, if your clients aren't talking about fees that's because there are no plans to change their fee structure. And the whispers I'm hearing are the large Staff/AMC hybrid companies (RSDS, Accurity, True Footage, Class) and the smaller tag along wanna-be firms aren't planning on raising fees in an effort to gain market share from anyone who does, which is mostly indie appraisers. Someone I trust runs a national panel was approached with a "Are fees are staying the same" pitch. Good luck ladies and gents, tough times ahead.

Since mortgage volume is currently pretty low and there is an oversupply of appraisers compared to the demand for mortgage lending appraisals (at least in most areas), it does seem likely that fees will not be increasing just because of the the rollout of UAD 3.6. Fees will likely not increase substantially until the demand for appraisals increases or the supply of appraisers decreases, or a combination of both occurs. It is a tough environment out there for residential appraisers and I wish everyone the best of luck and would encourage everyone to diversify their income sources to the extent possible.

 

[alebrewer]

What a mess. Even if they hit the 9/01 release date, that gives an indie appraiser how long to work through an industry changing workflow?

Another issue indie appraisers aren't going to like, if your clients aren't talking about fees that's because there are no plans to change their fee structure. And the whispers I'm hearing are the large Staff/AMC hybrid companies (RSDS, Accurity, True Footage, Class) and the smaller tag along wanna-be firms aren't planning on raising fees in an effort to gain market share from anyone who does, which is mostly indie appraisers. Someone I trust runs a national panel was approached with a "Are fees are staying the same" pitch. Good luck ladies and gents, tough times ahead.

I haven't heard much from our panel appraisers at this point. Heck - I've had several folks I've visited with who haven't even heard of UAD 3.6 yet. This thing is gonna hit a bunch of appraisers right in the face.