20 Minute AI Appraisals Are Coming

[timd354]

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.

 

[timd354]

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.

 

[J Grant]

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.

 

[alebrewer]

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.

 

[BRCJR]

The law and regulations for taxpayer-backed lending.

....have constantly changed with the times, throughout history......

 

[Vermonter]

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.