UAD 3.6 discussion

[timd354]

In the seven years of development, The GSE's must have spoken wiht the software companies, esp since they are owned by the corporate players who own MLS , data etc ( Core Logic for one ) Surely the software companies must have communicated to the GSE's that a cloud based "dymanic form" would not be compatible with the current way appraisers work ( and save time ) with the current forms which can use templaces, merging or drop in saved comments.

It's not too late - the GSEs can scrap the dynamic form and simply update the current forms to include the data fields and photo sections they want .

But out of pride and to safe face lets assume they won't - which will expose the appraiesrs to the blame of taking too long on each report, not being able adapt to new tech etc.

You have not seen the software and really have no idea whether or not the software providers will provide the ability to clone reports or use templates, yet you are ripping on the GSEs and stating that they should sh*t-can the whole thing based on information that you clearly don't know.

By the way, what does the form being so-called "dynamic" or the software possibly being "cloud-based" have to do with whether or not the forms software providers will provide the functionality to clone reports or create templates?

In any case, for anyone using Total, per a la Mode's website, it it will definitely be possible to clone reports and create templates from the first day their UAD 3.6 software rolls out, although they likely will not have their so-called SmartMerge functionality figured out until later:

https://blogs.alamode.com/uad-3.6-in-action
Will UAD 3.6 work with templates?

Templates will still be useful, but you'll use them for slightly different reasons and in different ways. At least at first SmartMerge will not be available. However, you can use this workaround: Save a regular file as a template, then when you want to use it just open it and "Save As" to create a new, identical file.

 

[TerryRohrer]

An analysis of UAD 3.6 posted to Facebook. I have no opinion yet, just posting for discussion.

Who is the author? Not much value in a pronouncement when the author is unwilling to take credit and allow readers to identify potential bias and conflicts.

 

[NC Appraising]

You guys really need to listen to the below and contact your software provider. Per the below, ACI will not allow for cloning or templates.

Sfrep will.

After watching the video, I will admit that I am more at ease....

How I take it, it will be more drop down and selections...time saving. Less of the need for commentary.

Canned statements.....will the be needed since they are kinda built in.

Now, will the lenders accept this? Shaking head...the GSEs are going to have to do some educating. Lenders love those Canned statements to keep them out trouble.

ACI comment 39:00 mark
34:00 mark another goodie

 

[Essexfenwick]

Don't

be such an Eeyore. Once we get used to it, it will be ok. We have used the same forms since forever, with a few tweaks. Something had to change and this is the result. You don't have to like it, but if you want to work, you need to figure out how to best use that form.

They're not building data centers that use the power of an entire city and then sending expensive appraisers out in the field. At most a property describer will take photos on all but the most complex which will probably need an SRA. AI will most certainly be able to tweak value as well as any skippy out there and probably give a range of value with some interest rate tweaking for the upper ranges. No doubt loan officers will be wiped out too. AI can easily replace their bloated compensation for free and 24/7 365 service .

 

[J Grant]

Think about it this way: The appraisal doesn't make the loan 'better'; you could have a stellar appraisal and still make a poor lending decision. The appraisal is information that the lender uses to assist them in making sound lending decision(s). It's the lending practice that determines the quality of the loan - not the appraisal.

For perspective, since it is a mortgage loan.

1)The quality of the loan is anchored by two things: 1) borrower quality, the ability to repay the loan , coupled with the down payment amount . The UW vets the borrower so that the loan officer can make a decision to deny, approve, or conditionally approve the borrower.

2) The quality of the loan is also enhanced by the collateral ( the property). The appraisal vets the property and its value so that the loan officer can make a decision whether to deny, approve, or conditionally approve the property.

Only the borrower can make timely payments or stop making them. If the borrower stops making payment, the investors/tax payers have the property as collateral. That is what sets a mortgage loan apart from other types of loans. The value of the property and the fact that is location bound, cant; be moved or towed away like a car, is what allows these loans the favorable rates and terms to the borrowers.

 

[alebrewer]

1)The quality of the loan is anchored by two things: 1) borrower quality, the ability to repay the loan , coupled with the down payment amount .

No, J. The quality of the loan is determined solely by the repayment punctuality of the borrower. Period. Down payment doesn't matter so long as the borrower makes payments. LTV doesn't matter so long as the borrower makes payments. Appraisal doesn't matter, credit score doesn't matter. All of those things become important when the borrower DOESN'T make the payment. And all of those things fall under the umbrella of 'sound lending practice'. You don't make 100% LTV loans on 3rd home investment loans (for example). At the end of the day, all those 'lending practice' components drive (or should drive) the cost of the loan - which is to say, the rate. The riskier the loan, the higher the rate that should be charged. Whether that risk is in the form of credit score, high LTV, DTI, etc., the rate should be tied to the relative risk of the loan. Which it is not currently. Oh - it is in theory, but the 'buckets' of loans in MBS pools are extremely heterogeneous when it comes to loan quality.

 

[Non Sequitur]

I'm amazed that some appraisers are still arguing over whether or not their super-duper appraisal skills can stop losses after defaults. Anyway, while appraisers debate that the world is moving on:

https://www.forbes.com/councils/for...2gBjT99rT_NDTCt_iQ_aem_sffLU1xZMeJtRDS6Jvdceg

"In all this, it’s easy to miss the changes that AI will bring to the parts of society that you don’t think about every day, but the world runs on. Take, for example, the market for property appraisals, my field of interest, worth almost $10 billion annually in the U.S. alone."

"By packaging some clever computer vision with an LLM and the capabilities of modern smartphones’ LIDAR cameras, we can now produce a detailed 3D floorplan and a report in compliance with Fannie Mae and Freddie Mac’s requirements in a few minutes and at a small fraction of today’s cost.

Then, for the form-filling step, AI can generate a near-complete report. Now, the appraiser can spend their time doing what they do best: creating a narrative around why a property is worth what they say it is. Appraisers can complete 10 times as many reports, and the time it takes to get an appraisal done on a property, often the slowest step in the mortgage approval process, gets drastically cut."

It's almost like 3.6 was designed for this, hmmmm.........

 

[NC Appraising]

Work Smarter, Not Harder: How Freedom Appraise is Empowering Appraisers - Beyond the Numbers

In this episode of Beyond the Numbers, Kevin Hecht sits down with Andy Arledge—appraiser, software developer, and founder of Freedom Appraise—to explore how technology can empower, not replace, today’s working appraisers. Andy shares how his decad...

www.buzzsprout.com

 

[Non Sequitur]

And another match made in AMC heaven:

https://www.wjhl.com/business/press...SoW908_-6MUa9p0tbJ_aem_p5VtK2ID4ZwNabslMpZx4g

Since the linky-link doesn't work I'll cut and paste with commentary for fair use compiance:

Me: It's True Footage up from the ashes of their spanking.

"True Footage, a technology-driven appraisal and valuation company transforming home valuation nationwide, and Restb.AI, the real estate industry’s leader in AI and computer vision technology, today announced a new collaboration to substantially cut hours from the appraisal process.

By leveraging Restb.AI’s AI-powered Condition & Quality (C&Q) scoring, True Footage is helping appraisers produce faster, more objective, and fully documented valuations at a time when the Government-Sponsored Enterprises (GSEs) are pushing for appraisal modernization.

“True Footage is empowering appraisers with the best technology available to redefine how appraisers perform appraisals,” said John Liss, CEO at True Footage. “By leveraging Restb.AI’s AI leadership, we’re at the forefront of innovation, giving appraisers a tech-enabled workflow that improves accuracy, transparency, and efficiency and creates more documented and compliant appraisals.”

True Footage, with operations across 29 states including most major markets, offers valuation tools such as TrueTracts, a platform that enhances appraisers’ judgment by surfacing data-driven insights from thousands of real-time calculations. It helps them move faster without sacrificing control and unlocks a level of analytical depth that isn’t possible through manual processes alone."

Me: Yep, running trainee and runners in 29 markets and counting!

"By integrating Restb.AI’s C&Q scoring, True Footage appraisers can not only sort and select comparables more efficiently, but also leverage large-scale property condition and quality data to derive more credible adjustments. This reduces reliance on subjective judgments and removes key unknowns from the adjustment process.

By automating and standardizing C&Q ratings across thousands of properties, this integration will help generate more accurate and defensible adjustments, not only for quality and condition, but across the full feature set.

“Appraisers want to focus on analysis, not tedious manual review,” said Tony Pistilli, President, Valuation at Restb.AI. “Partnering with True Footage delivers real-time savings to appraisers, but also reduces subjectivity, while delivering valuations that align with the industry’s modernization push.”"

Me: Yeah, believe that. Take a look below:

"The partnership delivers significant benefits for appraisers, valuation firms, and lending professionals, including:

● Faster, more efficient appraisals: AI-powered C&Q scoring lets appraisers identify similar-condition comparables without manually reviewing dozens of listing photos.
● More documented and accurate adjustments: Objective, image-based assessments of property condition and quality reduce subjectivity, resulting in more defensible reports.
● Support for GSE UAD modernization: Meets new requirements (UAD 3.6) to separately assess the interior and exterior condition and quality of properties, helping appraisers stay compliant.

The TrueTracts platform will be demonstrated at ValExpo in Las Vegas, August 11–13, as part of True Footage and Restb.AI’s joint commitment to empower appraisers with better tools and support the industry’s modernization efforts.

For more information about the partnership or to request access, visit Restb.AI or True Footage."

Me: Think the future isn't now? Keep debating whether or not "full" appraisals are some sort of standard, the world is moving on.

 

[J Grant]

No, J. The quality of the loan is determined solely by the repayment punctuality of the borrower. Period. Down payment doesn't matter so long as the borrower makes payments. LTV doesn't matter so long as the borrower makes payments. Appraisal doesn't matter, credit score doesn't matter. All of those things become important when the borrower DOESN'T make the payment. And all of those things fall under the umbrella of 'sound lending practice'. You don't make 100% LTV loans on 3rd home investment loans (for example). At the end of the day, all those 'lending practice' components drive (or should drive) the cost of the loan - which is to say, the rate. The riskier the loan, the higher the rate that should be charged. Whether that risk is in the form of credit score, high LTV, DTI, etc., the rate should be tied to the relative risk of the loan. Which it is not currently. Oh - it is in theory, but the 'buckets' of loans in MBS pools are extremely heterogeneous when it comes to loan quality.

You keep talking about loan quality, which is 100% borrower; however, I am trying to point out that what makes the terms of these loans possible for borrowers, is that the loan is anchored by collateral (the property)

The value of that property is what green-lights the LTV of the loan.