Has Anyone Completed A 3.6 Yet

[chad hampton]

How does an appraisal report that’s adjusting GLA at $30 per square foot on million dollar homes make it through AMC review or Lender review?

Seems like a failure of the system for something like that to make it all the way to the GSE’s weeks/months later.

 

[Surf Cat]

"We reengineered VeroSCORE to deliver immediate visibility into collateral risk with full UAD 3.6 compatibility. By automating the bulk of the quality control process, our clients can eliminate manual bottlenecks, reduce review times, and lower their costs to produce a loan."

Do they mean the manual commentary entered by the appraiser stating that the subject property is siding apartments, backing to a arterial feeder street, or has a sagging roof?

The 3.6 appears to be geared to heavily tamp down on commentary. Fine by me. However, sometimes you just need to explain and it can't be avoided. Everyone here knows that sometimes housing comparison differs radically. You just can't checkbox away location, comparison of features, condition..... it doesn't work that way.

This VeroSCORE paints a pretty picture on how easy it's going to be. They are delusional. Their system should be renamed VerySCARY.

 

[jtinmichigan]

I have completed several as demo's to prospective clients. The form I copied off the HUD web site, I then fed it to my AI companion and together we developed a form lenders like.

Uh yeah, Hillbilly. HUD has nothing to do with 3.6 at this point. And 3.6 isn't a form. Wow.

 

[chad hampton]

It’s not a form? Looks like the exact definition of a form. 500 drop-down menus.

 

[DWiley]

The 3.6 appears to be geared to heavily tamp down on commentary.

There are comment fields in every section in UAD 3.6. The goal is not to "tamp down" commentary; the goal is to have that commentary in an appropriate section of the report, not buried in an (often unformatted) general text addendum.

 

[Sadie]

When we see an appraiser adjusting at $30/SF on a 5 million dollar home, we do not care how if that adjustment came from a list or from AI

You should care because the basis for that adjustment has to come from somewhere. If its from AI, chances are the adjustment may nor be supportable. The reliance on AI solely for the basis of an adjustment is happening right now. The belief of some is that if its AI, it must be right and supportable. But most of the time it is not. It just spits out a word salad that includes "regression analysis" and the lazy appraiser thinks its golden. AI has its use, but only as one of the tools in your tool chest.

 

[DWiley]

How does an appraisal report that’s adjusting GLA at $30 per square foot on million dollar homes make it through AMC review or Lender review?

Seems like a failure of the system for something like that to make it all the way to the GSE’s weeks/months later.

When you say a "failure of the system," why do you always seem to ignore that the "system" included the appraiser apparently using "the list" from 25 years ago? Sure, others could have/should have caught it, but there would be no need to catch it if it didn't happen in the first place, right?

 

[DWiley]

You should care because the basis for that adjustment has to come from somewhere. If its from AI, chances are the adjustment may nor be supportable. The reliance on AI solely for the basis of an adjustment is happening right now. The belief of some is that if its AI, it must be right and supportable. But most of the time it is not. It just spits out a word salad that includes "regression analysis" and the lazy appraiser thinks its golden. AI has its use, but only as one of the tools in your tool chest.

I think you missed the main point of my post

Adjustments must be supported. Using "the list" or using AI alone are both equally wrong. Based on your review experience, what percentage of reports have you seen where the adjustments are actually supported rather than just pulled from the air "based on my experience"?

 

[chad hampton]

Yes, I don’t know why everybody keeps saying you can’t add commentary. My understanding is you can add as much commentary as you want in the section where it belongs. I always tried sticking to that on the traditional reports. 95% of the time I fit everything I needed on the lines provide provided. I avoid reviews at all cost, but I can’t stand when I would look at an appraisal and it would say see comment page on every damn line on page 1.

So part of me understands why this change was made, it was damn near impossible to read some appraisal reports when you had to scan through four pages of comments instead of seeing them in the lines whear they belong. I knew that would come back to bite us appraisers.

Often, Less is more.

 

[chad hampton]

When you say a "failure of the system," why do you always seem to ignore that the "system" included the appraiser apparently using "the list" from 25 years ago? Sure, others could have/should have caught it, but there would be no need to catch it if it didn't happen in the first place, right?

That’s part of the system I’m referring to, why didn’t the AMC or the lender inform the appraiser that if they don’t either seriously explain why they’re adjusting for that rate or possibly reconsider it, they’re not getting anymore orders as a $30 per square foot rate on a multimillion dollar home seems inaccurate.

I think we all can agree that a $30 per square foot adjustment doesn’t exist anymore. Seems like that would be a real basic thing that would be taken care of in a review.