Has Anyone Completed A 3.6 Yet

[Bobby Bucks]

The “form” that isn’t a form topic keeps popping up. I have a hunch the 3.6 witch hunters will ban the word entirely at some point, but I hope they run more tests than they have on the current Abomination lab rabbit. I get amused about once a month with 2.6 when using hot spot, sky or whatever they’re calling that crazy upload feature this week. If you use the word “appeal”, it’s a naughty word that gets you a slap on the wrist, but if the report includes the 1007 rent schedule the banned word “appeal” is branded to the form. Sometimes it makes it through, sometimes not. That's what override codes are for. Maybe for 3.6, I’ll have a boilerplate that preemptively begs forgiveness if I use the word “form” in the 3.6 form …..even if Fannie forgets to remove the brand. Be careful out there folks, you can get demerits if you use a banned word to describe why you’re using a banned word, always use good form and tact when using banned words. It’s in the USPAP.

 

[Terrel L. Shields]

can't checkbox away location, comparison of features, condition.

Sure they can. You need faith my friend. Never mind other than offering a single "Paired sale" of unlikely pairs, you'd have no comparison at all. "View", "Location", "Condition" are generally only guesses upon the OBSERVED opinion of the appraiser. Gee, it's a non-physical dartboard. My fireplace is worth somewhere between $41,231 and a negative $15,493. Pick a numba. But I proved it with paired sales.

 

[Sadie]

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"?

My point is AI spits out something that sounds great and appraiser-ey. Kind of like a baffle them with BS type of thing. You have to work harder to parse out the wheat from the chaff when AI is used to support adjustments. And when used to write the report in general.

 

[Surf Cat]

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.

I understand...... the freeform addendum is gone. The drop-down comment sections however, are to be structured, prioritizing machine readable data over essays. From what I understand, there's a limit to how much commentary can be inputted in those fields. Admittedly, I have not completed a 3.6. So I don't know if that's true or not.

Sometimes, an essay is required explaining the lack of competitive sales to the subject, why certain comparables were chosen over others, etc etc. That's all I'm saying.

In regards to Chad's point commenting within the form itself as opposed to the addendum. I use Wintotal and when typing in the comment section of the form..... sometimes that software would suddenly bold, italicize, change fonts, completely rearrange commentary where you had to use the addendum so that the jackknife wouldn't close on your fingers.

It seems to me, all the developers needed to do was create a hard form of the 3.6 for stability to type in and develop your analysis which could be blown into the web-based form for delivery. Per the commentary here on the Forum, it's a slow, arduous task to complete an Appraisal in a timely manner in its current iteration.

 

[Surf Cat]

Sure they can. You need faith my friend. Never mind other than offering a single "Paired sale" of unlikely pairs, you'd have no comparison at all. "View", "Location", "Condition" are generally only guesses upon the OBSERVED opinion of the appraiser. Gee, it's a non-physical dartboard. My fireplace is worth somewhere between $41,231 and a negative $15,493. Pick a numba. But I proved it with paired sales.

Keyword being observed. That requirement is going away too as AI (or a PDC) is going to "observe" for the appraiser..... yet the appraiser has to assign a rating and sign to it.

Seeing is believing. Observing the comparables curbside tells a big part of the story. I would imagine that you of all people, know this to be true in your rural location..... the MLS listing doesn't reveal everything that is needed to make a determination. Now, I know that there's exceptions to that as sometimes, you cannot get up close to the sale. In those instances, we as appraisers make a judgment call.

BTW..... I rarely adjust for a fireplace. Super difficult to ascertain a market-derived adjustment on those.....

 

[DWiley]

My point is AI spits out something that sounds great and appraiser-ey. Kind of like a baffle them with BS type of thing. You have to work harder to parse out the wheat from the chaff when AI is used to support adjustments. And when used to write the report in general.

There are plenty of non-AI tools that do the same thing. I got a personal demo of tool that a lot of appraisers use, and the methodology it uses are exactly 180 degrees from what is taught in basic procedures courses - but it sure does spit out some pretty graphs and charts

 

[DWiley]

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.

I think we can agree on that. I also agreed that it should have been caught. What you never seem to want to say is that it shouldn't have to be caught, because no credentialed appraiser should make such an adjustment in the first place. It is the appraiser who signs the report; not the lender, AMC or GSE.

 

[J Grant]

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"?

So if both are equally wrong, why did you allow appraisers to make boilerplate comments and what turned out to be a "list" of unsupported adjustments to stay active all these years?

Bringing up past bad appraisal practices to rationalize allowing current or future bad practices is a specious argument.

The scale of AI makes it more of a threat, combined with the slickness of it, able to produce an impressive-sounding narrative (which might be misleading), slick charts and stats that might be irrelevant or contradict the subject's immediate market.

There needs to be screening of the appraisals to identify rote use of AI without personal analysis - USPAP does have standards in the FAQ with AI and AVM that the appraiser understand it and can show their own personal work ( not just what AI spit out.

AI can be a great tool but the abuse of it can be just as great.

 

[chad hampton]

I think we can agree on that. I also agreed that it should have been caught. What you never seem to want to say is that it shouldn't have to be caught, because no credentialed appraiser shodul make such an adjustment in the first place. It is the appraiser who signs the report; not the lender, AMC or GSE.

Well, sure, no credentialed Appraiser should be making a 30 ft.² adjustment. Not unless the home is about $80k and I don’t know how many more of those there are.

Maybe there’s things in my reports that I should be reconsidering, but if nobody ever brings it up or outright questions it, I’m gonna assume that what I’m doing is acceptable as well. Especially if I’m keep getting sent orders.

For as much as I give appraisers a break , others seem to think that the AMC‘s only job is to collect the portion of the fee and not much else.

I’ve never claimed that there aren’t appraisers that are working every day under bad appraisal practices. There’s all sort of shady things going on in real estate. Every aspect of real estate. I wish appraisers were chosen for work based on résumé, experience, sample appraisals, customer, service, etc. But when the only criteria is fee, you get what you get.

 

[DWiley]

So if both are equally wrong, why did you allow appraisers to make boilerplate comments and what turned out to be a "list" of unsupported adjustments to stay active all these years?

LOL. It is the states that "allow" individuals to have appraiser credentials, not the GSEs.