UAD 3.6

[MJPBecker]

This is a double-edged issue for me. On the one hand, we have to realize that we are becoming data providers for AMCs, Phony-Mae, and Fraudy Mac, and that the inevitable point is where many properties will be on file and will use AI for valuation purposes. The other is that many lenders and their underwriters do not have a clear picture of the guidelines and how their company will use, add, adapt, or modify the information requested; there should be a reasonably long road before any significant change to our industry occurs. This is just another significant modification to our industry that each of us needs to learn and adapt to. For me, it is too early to paint this as a doom scenario, and there is plenty of time to learn and understand the inevitable.

 

[Alsie35]

This is a double-edged issue for me. On the one hand, we have to realize that we are becoming data providers for AMCs, Phony-Mae, and Fraudy Mac, and that the inevitable point is where many properties will be on file and will use AI for valuation purposes. The other is that many lenders and their underwriters do not have a clear picture of the guidelines and how their company will use, add, adapt, or modify the information requested; there should be a reasonably long road before any significant change to our industry occurs. This is just another significant modification to our industry that each of us needs to learn and adapt to. For me, it is too early to paint this as a doom scenario, and there is plenty of time to learn and understand the inevitable.

YOU may become a "Data Provider". But I will NOT. (See meme below)

I DO agree with you that the "UAD 3.6 Abomination" will be impossible to fully implement in 12 months as they initially planned. I am willing to keep working into 2027 if it is delayed - but no longer. Not wasting a single SECOND looking at anything "Abomination"-related.

 

[Non Sequitur]

YOU may become a "Data Provider". But I will NOT. (See meme below)

I DO agree with you that the "UAD 3.6 Abomination" will be impossible to fully implement in 12 months as they initially planned. I am willing to keep working into 2027 if it is delayed - but no longer. Not wasting a single SECOND looking at anything "Abomination"-related.

View attachment 105072

Even if an appraiser wanted to transition and become a "Data Provider", the fees aren't there. $25-$50 a pop waiting for your Uber style phone app to bing is no way to make a living.

 

[J Grant]

YOU may become a "Data Provider". But I will NOT. (See meme below)

I DO agree with you that the "UAD 3.6 Abomination" will be impossible to fully implement in 12 months as they initially planned. I am willing to keep working into 2027 if it is delayed - but no longer. Not wasting a single SECOND looking at anything "Abomination"-related.

View attachment 105072

We have always been data providers !! Even an appraisal waiver/value acceptance is conditioned on an appraisal having been done within the past 6 years ( for now)

However, with UAD 3.6 we will be asked for a detailed, massive amount of data and additional measurements, which will slow the process considerably, regardless of which software program we use or whether we use a mobile app. The amount of data, and time spent gathering it, on-site and in the appraisal analysis might be beyond the level of tolerance- we will not know until we try several reports - imo. Fees need to rise substantially, though I doubt that will happen- but a moderate fee rise is needed to break even for the additional software, data costs and time spent on each assignment with the new format.

Its a decision each of us will have to make in their own time.

 

[J Grant]

AI Key changes for lenders

• Single, dynamic report: The new UAD 3.6 replaces all previous appraisal forms with one flexible, data-driven report that is customized based on the property type.
• Data-driven approach: The report will rely more on structured data fields rather than free-form text, which will make information more consistent, searchable, and automatable.
• New data organization: Information is now contained in "data packets" (e.g., "Subject Improvements"), moving away from the old form-based layout.
• • Updated deliverables: Instead of just XML files, the delivery will include a ZIP file containing the XML, a PDF, and all appraisal images.
  • Enhanced quality control: The increased data fields will enable stronger automated rules and quality checks.
  • Lender readiness: Lenders must ensure their technology and workflows are ready for the new standard, which includes updating integrations with their Appraisal Management Companies (AMCs).
  • Dual processes: Many lenders will need to run dual processes (both the old and new systems) for a period in 2026 as the transition occurs.

How to prepare

• Train staff: Employees will need to learn the new data structure and where to find specific information.
• Update technology: Lenders need to ensure their Loan Origination Systems (LOS) and other technology can handle the new data and delivery formats.
• Work with partners: Collaborate with your AMC to ensure they can deliver UAD 3.6-compliant reports and that your systems are integrated correctly.

My comment - this sounds just as bad for the lenders as for the appraisers. I bet none of them are happy - UAD 3.6 will not increase their loan volume or income, which is what they care about. It adds more bureaucracy, expense, and resources to overcome technical hurdles and retrain staff. I can not imagine it benefits the lenders since their bottom line is not increased and perhaps decreased due to more time spent processing.

 

[Joe Flacco]

Did they start ordering these?

 

[Non Sequitur]

Did they start ordering these?

No. The "first" 3.6 appraisal report they are crowing about is in reality a beta test that's months behind.

 

[Alsie35]

Even if an appraiser wanted to transition to be a "Data Provider" the fees aren't there. $25-$50 a pop waiting for your Uber style phone app to bing is no way to make a living.

And that is why, after we all retire, no independent appraiser will EVER AGAIN be able to make a good enough living to provide for his family and to be successful enough over decades to retire. The remaining REAL appraisers, post-"Implementation of the Abomination", paraphrasing Lee Elia here - will be in a "Disheartening ****ing situation". And its not remotely funny. I could say a lot more - but it would be pointless. We have never had a voice in our fate. Our only "Ace"- Card is the Retirement Card. And I will play it. If enough of us do, then at least that will make a statement that might be heard.

I will say the following (no crystal ball required here): IF (and that is a big IF) the "Implementation of the UAD 3.6 Abomination" does bring the mortgage lending system to its knees, Bill Pulte will NOT be happy. And IF that happens, some people will finally have some answering to do.

It may not happen. I am not tech savvy and have no clue whether technologically they will be able to pull off a successful transition. (My money is on the implementation being delayed some as they slowly come to realize that pushing blindly forward in November 2026 will result in a total Cluster****.)

As the 70s song goes: "It don't matter to me". Either way, we are retiring. In a way, I have to give the "Powers that Be" a backhanded compliment - they were way better than I was at convincing my wife that we needed to enjoy life now and not wait any longer.

 

[Tim Hicks (Texas)]

We have always been data providers !! Even an appraisal waiver/value acceptance is conditioned on an appraisal having been done within the past 6 years ( for now)

However, with UAD 3.6 we will be asked for a detailed, massive amount of data and additional measurements, which will slow the process considerably, regardless of which software program we use or whether we use a mobile app. The amount of data, and time spent gathering it, on-site and in the appraisal analysis might be beyond the level of tolerance- we will not know until we try several reports - imo. Fees need to rise substantially, though I doubt that will happen- but a moderate fee rise is needed to break even for the additional software, data costs and time spent on each assignment with the new format.

Its a decision each of us will have to make in their own time.

The sad part is (and this only helps Danny's points) when I get another appraiser's report when I am doing the new assignment, I shake my head with disappointment. Basements counted in GLA, detached offices, ADUs counted in GLA, Rooms without a heat source counted in GLA, Rooms with 6-foot ceilings counted in GLA, etc. And that is just the subject property physical characteristics. The comparable sales selection is often laughable.

Nothing makes me angrier than a converted storage building being counted in the GLA in another appraisers report. Honestly, there are a lot of Fernando's out there.

 

[Tim Hicks (Texas)]

9-12 foot ceilings have never really mattered in appraisal comparable sales selection if you are truly using "comparable" sales they will all have 9-12 foot ceilings. I have owners ask me all the time did I see this improvement or that improvement and when I look at all the comparable sales they all have those same improvements. If they don't is it an overimprovement?