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20 Minute AI Appraisals Are Coming

Again, what is the USPAP definition of an appraisal? USPAP is our professional standard. That is why we should "care."

It seems that some lenders might care more about a valuation meeting a USAP standard for fed backed loans then some appraisers here do - which is embarrassing.
I got news for you...no lender actually cares about USPAP even if some of them give lip service that they care. They care about two things and only two things regarding the valuation: First, if they are selling the loan in the secondary market, they care whether the loan and the valuation supporting that loan meets the requirements of the entity they are selling the loan to. Secondly, if they are keeping the loan in their portfolio, they care whether the value is adequately established (which does not necessairly require a USPAP compliant appraisal) and whether whatever they did regarding the valuation will satisfy their regulators.
 
The law and regulations for taxpayer-backed lending.
The last I checked, the GSEs allow appraisal waivers on an increasing percentage of loans, so it does not appear that the laws and regulations governing the two entities who are by far the largest sources of mortgage funding, require a USPAP complaint valaution.
 
The last I checked, the GSEs allow appraisal waivers on an increasing percentage of loans, so it does not appear that the laws and regulations governing the two entities who are by far the largest sources of mortgage funding, require a USPAP complaint valaution.
I will agree on this part!

They will only grant a waiver if an appraisal has been done within X years on the property, far as I know.
 
An appraisal is an opinon (USPAP)

Unless they make AI bots into a human that can form opinions and users agree to that, then AI alone can not produce an appraisal. Appraisers should know that. Stop calling it an appraisal. if AI alone does it - it would be a valuatoin[
That's a very thoughtful statement, J! You are correct, of course. An appraisal is an opinion. AI generated information is not an opinion - at least in the common vernacular of our language.
 
RAG still depends on quality data and even then, is highly variable in terms of it's "analysis" and output.

No different than an appraiser.

If an appraiser can mentor a trainee, they can train an AI agent. It's just a different process.
 
USPAP applies to appraiser conduct, not calculator technology. "Appraiser" is a defined term and the comment therein refers to "individuals".

With that said, I'm sure an automated valuation protocol can be developed to meet all of the most significant benchmarks in USPAP even if the valuation itself cannot be said to consist of an individual's opinion or cannot be characterized as "USPAP Compliant". The program can be operated (by someone) on an impartial and objective basis, it can employ recognized methods and techniques, it can replicate a SOW that would meet the two tests of the SOWR (what other users for similar assignment expect and what an appraiser's peers would do), and even emulate Competency criteria.

Who/what is an AI's peer in a similar assignment?

So what's the difference between an AVM-assisted appraiser vs an appraiser-assisted AVM?
 
All I can say is my personal experience with AI so far is that it is wildly over hyped - it is a product and the developers want to make $. They've integrated it by now into many areas, and I have seen no improvement and, in some cases, adverse effects.

AI comes out with the first search result in a google or other online search. It sums up things in a bland way. Big freaking dwal. One or two clicks would bring up the same info, and to find anything in-depth or anything controversial, you have to keep searching anyway.

It does compose a short email well, I have heard, and it can auto-respond to an email - fine, but again, is that earth-shattering? I mean, like big deal.

Creative: In novels or creative writing or poetry, it plagiarizes and does not originate. The writing is stilted and predictable, and the plots are rehashed and generic.

Art: Computer art, for the most part, is boring and insipid once one gets past the brilliant colors or photo shop tricks. Not emotional or mysterois or detoth of would like authentic artt.

Customer service _ AI now answers the phone at some businesses and announces itself as the friendly AI agent. It loops in a circle, can not answer anything other than a programmed question and will not connect to a person, who is the only one who can answer anything but a rote question

Spell check: It inserts the wrong word that is spelled correctly but out of context. It will not spell check any controversial word and either deleted it or puts in a substitute ..

I have heard it can be utilized well in science and medicine. I wish we could restrict it to those fields and let everything else alone

I have heard AI can sync to run a factory in China. Good for China, I suppose.. Am sure it will develop further in its applications for business. Which won't make our lives better, just more anxiety filled as people will have existential dread about whether their job will be there tomorrow and those who have jobs having to work at warp speed and max "efficiency" I am starting to hate the word Effiency - it means a reduction in pay and a reduction in quality of life - the only ones it benefits are the top tier owners or large share holders.
 
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Would you like a drink with that order. Start practicing for your new jobs at mc'd.
 
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