3.6 Crunch Time

[Fernando]

I would offer that even if homes continue to be measure incorrectly/improperly, there is a benefit to having a standard for the measurement, so that one could, if desired/needed, actually prove that a home was not measured/calculated correctly. In the absence of a standard, any method can be claimed/cited as correct.

The appraisers should measure according to their local way. Doesn't need standards because valuation will be same.
No need to measure to the tenth of the foot because gross area won't be significantly different (and no one really checks). Fannie making up rules in which appraisers decide what is important and what is not. It's always about accurate valuation and Fannie is too concern with the minor details.
It's just another tool for lenders/clients/Fannie to go after appraisers when things go wrong.

 

[Fernando]

There are a lot of things I like about 3.6. The old form has always been way too limited for complex properties. And the PDF of the final report is much more readable for the average person. We all got used to it using it for so many years, but I think we could all agree it is a clunky form that should have been done away with years ago?

But 3.6 is also way too cumbersome. Needlessly so. I expect they will pare a lot of things down as time goes on. This certainly isn't going to decrease turn times. At least not initially.

And I just don't see how all the software providers and AMCs are going to be ready to go in another 6 weeks. Let alone the appraisers. The fact that it's this close to the deadline and there have been so few requests for them? I thought I'd be getting them 6 months ago and that it would be most of my orders by now. But here it is, the middle of September and so far I've had exactly ONE request for one. And I've been telling them (when asked) that I'm ready to start doing them for 2 months.

The problem with 3.6 is it's too general of a form for all types of properties to appraise.
Imagine an attorney having one form to start with and then going through pages for relevant information relating to writing a lease, business contracts, etc. Specialty attorneys know what to do and get the appropriate documents to use and can quickly get it done.

 

[KeyWhiz]

The problem with 3.6 is it's too general of a form for all types of properties to appraise.
Imagine an attorney having one form to start with and then going through pages for relevant information relating to writing a lease, business contracts, etc. Specialty attorneys know what to do and get the appropriate documents to use and can quickly get it done.

I don’t know about that yet. We will have to see. The good thing about the form is (supposedly) you can input whatever you need to input and what you don’t doesn’t end up in the final product. How it all works with multi-family properties and everything else? Remains to be seen I suppose.

It is interesting the difference between the form we work with and what the final report looks like. I would think that as we go along it will become more intuitive what we need and what we don’t. But time will tell, I suppose. “One size fits all” does seem a bit wishful-thinking, I will admit

 

[Dale Floyd]

Hi all…. Just a few thoughts from my desk…

The 3.6 acts and feels very similar to a narrative, with a bunch of guardrails (limits of how many much one can type in the descriptions, photos, exhibits, and such.)

It’s going to take much longer to complete, with respect to the 2.6, but ultimately the conclusion of value won’t change regardless of the format.

Appraisers should charge for the additional time this takes. I don’t recall seeing any other industry doing differently when more is demanded.

There’s going to be lots of bugs trying to conform. Review processes are still being tweaked, so things are going to be scrutinized differently as time goes by. Knowing that up front will spare all of us the surprises to come.

And if I may be so bold - The GSE’s aren’t requiring all of this because they love the appraiser - trying to hold them to some higher standard is asinine. They are never going to do more than defend their jobs. Remember, the appraiser is the only independent voice of reason with respect to value, not the GSE’s - AMC’s - Realtors - Mortgage Companies - etc. Without us, many of them would not exist.

Hang in there friends.

 

[J Grant]

The problem with 3.6 is it's too general of a form for all types of properties to appraise.
Imagine an attorney having one form to start with and then going through pages for relevant information relating to writing a lease, business contracts, etc. Specialty attorneys know what to do and get the appropriate documents to use and can quickly get it done.

The 3.6 is one master format. When the appraiser selects the property type ( condo, SFR, etc.), only those sections that apply are what we fill out and what gets reported in a form to the client. Which still means we are filling out more data fields.

The client and users don't get a general form; they get a version specific to the property type.

 

[Dublin ohio]

The problem with 3.6 is it's too general of a form for all types of properties to appraise.

From the above it is obvious you haven't taken more than a cursory look at 3.6.

 

[Airstream]

I decided to write our two Senators about this issue. I don't know if anything will happen because it is election season. But it is getting down to the final month and this process just isn't where it should be for full implementation. I simply requested six more months. That would give us all some breathing room to get our acts together. So write your Senators and Congressional people and see what happens. That's really the only thing that I think can be done at this point.

 

[Surf Cat]

I decided to write our two Senators about this issue. I don't know if anything will happen because it is election season. But it is getting down to the final month and this process just isn't where it should be for full implementation. I simply requested six more months. That would give us all some breathing room to get our acts together. So write your Senators and Congressional people and see what happens. That's really the only thing that I think can be done at this point.

Did you stuff a couple of Benjamins in the envelope to get it read?

 

[Airstream]

Did you stuff a couple of Benjamins in the envelope to get it read?

I think it will take more than a few Benjamins

 

[gregb]

Easy-peasy

Hello, I’m taking the class for the dynamic 3.6 form on Monday with the American Institute. How many appraisers read the 91 page handbook and 367 pages of appendices? Thanks Welcome to the NEW URAR,
I am your instructor for the Appraisers Guide to the New URAR seminar. To make the class a good experience and to take full advantage of the time, prior to class you should download the Student Handbook, which is 91 pages and contains a PDF of the slide deck with space to take notes. You should also download Appendix F1, URAR Reference Guide, and D1, Sample Scenarios, from either the Fannie Mae or Freddie Mac sites, see the Downloads in the Course Materials for links to the Fannie Mae and Freddie Mac sites. I suggest downloading the F1 and D1 Appendices in the PDF version, as they are long, F1 is 367 pages, and are easier to search in a PDF. This is a very full day of material, so having these loaded before class will allow us to start on time.