UAD 3,6

[Sadie]

How many lenders will, after a disastrous rollout of the 3.6, revert to the 2.6 and hold the loans until they are seasoned, then sell them. Or find a whole new secondary market buyer other than F/F? From what I have seen, its hard to even get a 3.6 report submitted to a lender. Add that to the increased turn times, and you have a built in opportunity for an enterprising entity that is willing to invest in the secondary market. F/F may regret their push to have the 3.6 mandatory before its ready. But then again, Pulte is not a fan of F/F and this could be part of the end game.

And no, I am not afraid of change, I think the 3.6 will be a PITA but not a disaster once all the kinks are worked out, but it is a long way from ready.

 

[Mike Ault]

How many lenders will, after a disastrous rollout of the 3.6, revert to the 2.6 and hold the loans until they are seasoned, then sell them. Or find a whole new secondary market buyer other than F/F? From what I have seen, its hard to even get a 3.6 report submitted to a lender. Add that to the increased turn times, and you have a built in opportunity for an enterprising entity that is willing to invest in the secondary market. F/F may regret their push to have the 3.6 mandatory before its ready. But then again, Pulte is not a fan of F/F and this could be part of the end game.

And no, I am not afraid of change, I think the 3.6 will be a PITA but not a disaster once all the kinks are worked out, but it is a long way from ready.

That's part of the problem. Lenders are worried they won't be able to sell some of their originations in November unless they start ordering 3.6 right now due to closing delays, etc. And the software is not ready. I tried to call the Alamode "Elite" technical support line yesterday on a sketch integration problem with a 2.6 appraisal and I was number 24 in the queue. I found a workaround instead.

 

[Sadie]

That's part of the problem. Lenders are worried they won't be able to sell some of their originations in November unless they start ordering 3.6 right now due to closing delays, etc. And the software is not ready. I tried to call the Alamode "Elite" technical support line yesterday on a sketch integration problem with a 2.6 appraisal and I was number 24 in the queue. I found a workaround instead.

I've been copy/pasting my sketch. Its doesn't look as good, but it works. heck, I have been copy/pasting most of the report.

 

[Vermonter]

And no, I am not afraid of change, I think the 3.6 will be a PITA but not a disaster once all the kinks are worked out, but it is a long way from ready.

Yeah, this is change unlike anything we've experienced before and it's not just impacting us, it's equally screwing with the lending side. This will be one big hiccup to the entire market.

Really wish they web based 3.6 and gave us the option to circumvent the software providers. They seem to be the biggest stumbling block at the moment and don't seem to be adding much value to the process compared to 2.6 and legacy forms.

 

[Sadie]

Yeah, this is change unlike anything we've experienced before and it's not just impacting us, it's equally screwing with the lending side. This will be one big hiccup to the entire market.

Really wish they web based 3.6 and gave us the option to circumvent the software providers. They seem to be the biggest stumbling block at the moment and don't seem to be adding much value to the process compared to 2.6 and legacy forms.

I'm not entirely sure that would work. Unless F/F was the one putting it out. The thing the providers do well is make sure the report conform to their guidelines. And since F/F fired everyone, there is no one to make sure a web based program was USPAP or even F/F compliant. Maybe the lack of staff is why this is such a **** show.

 

[Vermonter]

I'm not entirely sure that would work. Unless F/F was the one putting it out. The thing the providers do well is make sure the report conform to their guidelines. And since F/F fired everyone, there is no one to make sure a web based program was USPAP or even F/F compliant. Maybe the lack of staff is why this is such a **** show.

F/F is the one requiring 3.6 and everything is uploaded to UMDP. You think they leave guideline compliance up to the software providers? Do you rely on your software for USPAP compliance?

Software providers offer convenience with maps and sketching integrated, data sharing if you use that feature. All can easily be done via other avenues for A LOT cheaper.

 

[glenn walker]

How many lenders will, after a disastrous rollout of the 3.6, revert to the 2.6 and hold the loans until they are seasoned, then sell them. Or find a whole new secondary market buyer other than F/F? From what I have seen, its hard to even get a 3.6 report submitted to a lender. Add that to the increased turn times, and you have a built in opportunity for an enterprising entity that is willing to invest in the secondary market. F/F may regret their push to have the 3.6 mandatory before its ready. But then again, Pulte is not a fan of F/F and this could be part of the end game.

And no, I am not afraid of change, I think the 3.6 will be a PITA but not a disaster once all the kinks are worked out, but it is a long way from ready.

Few to none because when you hold loans your taking on interest rate and market risk and you always want the ability to sell to a GSE if nothing else works.

The lenders will get appraisals done on 3.6 and the GSEs will grant them waivers or the use of other products if need be.

No doubts the Brass has already ran this scenario and all the bases are being covered. It may even lead to
a planned crisis used to increase a large permanent use of waivers.

 

[Vermonter]

Don't know where the idea 3.6 is going to be delayed came from but it isn't helping. Wishful thinking maybe?

 

[Sadie]

F/F is the one requiring 3.6 and everything is uploaded to UMDP. You think they leave guideline compliance up to the software providers? Do you rely on your software for USPAP compliance?

Software providers offer convenience with maps and sketching integrated, data sharing if you use that feature. All can easily be done via other avenues for A LOT cheaper.

There you go, thinking again. Its dangerous when combined with F/F. It seems they just put stuff out there and let everyone figure out how to make it work.

 

[TerryRohrer]

The full report on their survey is worth a look:

"5) Expectations for higher fees are becoming more pronounced
Among the 831 respondents who answered the fee question:

• 66.7% anticipate a fee increase
• 17.1% expect an increase of $25–$100
• 26.8% expect an increase of $100–$200
• 22.7% expect an increase of more than $200
• 29.8% are still evaluating
• 3.5% expect no change

The responses from appraisers who have actually completed UAD 3.6 reports are particularly noteworthy. Among those 214 appraisers, 82.2% anticipate a fee increase, while only 14.0% remain undecided about pricing.

What this means for lenders: As appraisers gain firsthand experience, uncertainty around pricing appears to be declining—and, for many, that experience is reinforcing expectations that UAD 3.6 assignments will command higher fees."

UAD 3.6 Appraiser Survey: Fees, Turnaround & Readiness

New CSS survey of 863 appraisers shows rising UAD 3.6 readiness, higher fee expectations, and longer turnaround times as production experience grows.

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