AMC asking for UAD 3.6 fees, what's everyone thinking?

[J Grant]

I wonder what percentage of the lenders outside the GSE pipelines are going to convert from the legacy forms to this UAD setup? THEY won't be getting enough of the data on the comparables to drive the bigger/better AVMs so the additional info on each property will be useless to them. Meanwhile, the legacy forms are still a concise format that's easy to read.

I can well imagine a 2-tier market for appraisal services. I can also imagine some crossover requests. Ordered as a General Purpose form but convert to the GSE UAD and vice versa. For an additional fee, of course.

The smart play for doing an assignment on the legacy forms might be to complete the inspection on a UAD basis on spec, in case the order later converts to a UAD report. I dunno if they're doing it, but if I were an appraisalware vendor I'd consider adding in the capability of loading the relevant UAD info into the legacy forms so their program could operate bisexually.

Only GSE pipeline lenders will use 3.6, hard stop. There will never be a 2 tier market, unless the GSEs, for some odd reason, decide to allow both to be used indefinitely.

Non-GSE pipeline will continue to use existing appraisal forms or narratives as they have always done. After the GSE deadline, legacy forms will no longer be accepted by them. Hard stop. Up until that time, a lender can submit a legacy form.

 

[GWISC]

Only GSE pipeline lenders will use 3.6, hard stop. There will never be a 2 tier market, unless the GSEs, for some odd reason, decide to allow both to be used indefinitely.

Non-GSE pipeline will continue to use existing appraisal forms or narratives as they have always done. After the GSE deadline, legacy forms will no longer be accepted by them. Hard stop. Up until that time, a lender can submit a legacy form.

I have heard the same thing from several instructors.

 

[Terrel L. Shields]

My best direct client pays $715 for a typical appraisal.

Our local appraises would kill for a fee that high. But again, my clients will ask me to set a fee for the good faith estimate. And GFE's are not set in stone. The lender does not have to make every appraisal fit the pricing. Circumstances should dictate the fee. Yes, I did a drive-by for the same as an interior inspection once because the occupant (the ex of the owner who was supposed to leave when their youngest daughter turned 18) threatened to shoot me if I approached the house. A drive-by would normally be $50 cheaper from me. I've ran into commercial property with a residential property or additional land not disclosed. Again, I've never been told I couldn't charge what I want to charge.

 

[NC Appraising]

Our local appraises would kill for a fee that high. But again, my clients will ask me to set a fee for the good faith estimate. And GFE's are not set in stone. The lender does not have to make every appraisal fit the pricing. Circumstances should dictate the fee. Yes, I did a drive-by for the same as an interior inspection once because the occupant (the ex of the owner who was supposed to leave when their youngest daughter turned 18) threatened to shoot me if I approached the house. A drive-by would normally be $50 cheaper from me. I've ran into commercial property with a residential property or additional land not disclosed. Again, I've never been told I couldn't charge what I want to charge.

I rarely get fee requests.

Even the above lender every once and awhile while will contact me for a custom fee. It is usually for their high end homes. Less than 5%. They do their research.

My other credit union client same thing. They know my fees and what is C&R for their panel. They probably have a high GFE appraisal fee to, but do not pocket the difference.

I believe your situation is atypical, given your location and most homes are complex. So I understand your situation.

Think of this situation:

Clear capital and the lender pays $700. More than likely, the GFE is $700.
Then they find an appraiser at $375. A buffer, but they pocket the difference.

My client pays $715. Almost no appraisers ask for a fee increase as they know the fee is above what AMCs pay. So there are never any GFE issues

 

[George Hatch]

I anticipate a few assignments will start out calling for the legacy form and then get bumped to UAD-required after the fact. Then we'll get appraisers coming here to ask how to do that in light of the fact they didn't perform a UAD compliant inspection in the first place. How to solve? Make a return trip to re-inspect?

 

[FUgrad]

Anyone else starting to get emails from AMCs about UAD 3.6? I just got one saying they’re adding 3.6 products and asking us to set fees soon. From what I’m seeing, this looks more complicated and more time consuming than our current 1004/1073/1025

So has anybody seen any pricing on 3.6 software. The software provider websites seem to have nothing

Am I the only one thinking that appraisers are contributing to their own demise with this new dynamic form? All of the data that will be aggregated on a daily basis across the country brings us one step closer to AI appraisals does it not?

 

[J Grant]

I anticipate a few assignments will start out calling for the legacy form and then get bumped to UAD-required after the fact. Then we'll get appraisers coming here to ask how to do that in light of the fact they didn't perform a UAD compliant inspection in the first place. How to solve? Make a return trip to re-inspect?

For those few instances, the appraiser should just redo it on a 3.6 format and charge X $ for the additional time. If they need to go back and measure a ceiling height or such then do it. I doubt it will happen often enough to matter.

 

[J Grant]

Am I the only one thinking that appraisers are contributing to their own demise with this new dynamic form? All of the data that will be aggregated on a daily basis across the country brings us one step closer to AI appraisals does it not?

The answer is probably yes. Therefore, appraisers should charge as much as they/we can for the remaining years they use to gather the data to feed to AI.

 

[Essexfenwick]

Am I the only one thinking that appraisers are contributing to their own demise with this new dynamic form? All of the data that will be aggregated on a daily basis across the country brings us one step closer to AI appraisals does it not?

Transitioning from appraising to data collection. Not very many sales will need to enter data to maintain AI valuation models. If borrowers enter tax return and paycheck... mortgages can be instant. Obviously mortgage loan officers are very vulnerable.

 

[Dublin ohio]

Am I the only one thinking that appraisers are contributing to their own demise with this new dynamic form?

The alternative being....................