Are you currently doing appraisals with 3.6 form?

[Bella2023]

The entire 3.6 "rollout" is flawed and it's intentions are questionable. First and foremost, an appraisal is at least partly (if not mostly), a snap shot of the market in which the subject property exists in a given point and time. Hardly a reliable indicator of what may transpire on any given 30 year mortgage, as the majority of loans don't go bad within the first few years of origination. Of more importance is that which the intended user's are placing more accountability (aka blame) on appraisers when markets go through their natural cycles. Seems like a complete waist of time and effort to achieve minimal results. Just my 2 cents worth. Enjoy!

 

[Fernando]

Mercury continues to remind me to register my profile if I'm doing 3.6. If not, I won't be getting any more orders from them.

 

[Fernando]

On my practice 3.6 there was no required “box” for dimensions. I went back and forth with the tab key looking for it. I called a guy at SFREP to see if I was missing something and he said in the new form dimensions aren’t required.

Good. One less thing to worry about. Now appraisers won't consider differences in frontage.

 

[OSU Beavers]

With F&F letting all of the easy properties get a waiver, the only ones left to train for 3.6 on are complex headaches.

 

[J Grant]

To be fair, dropping the site dimensions and several other things is an improvement on the 3.6

 

[OSU Beavers]

Good. One less thing to worry about. Now appraisers won't consider differences in frontage.

Right, because a 40' wide by 150' deep lot has the same value as a 60' x 100' lot in the same subdivision. SMH.

 

[J Grant]

The entire 3.6 "rollout" is flawed and it's intentions are questionable. First and foremost, an appraisal is at least partly (if not mostly), a snap shot of the market in which the subject property exists in a given point and time. Hardly a reliable indicator of what may transpire on any given 30 year mortgage, as the majority of loans don't go bad within the first few years of origination. Of more importance is that which the intended user's are placing more accountability (aka blame) on appraisers when markets go through their natural cycles. Seems like a complete waist of time and effort to achieve minimal results. Just my 2 cents worth. Enjoy!

Imo, this is because entities shifted the conversation about risk from the collateral ( the subject property ) to the borrower when referencing appraisals and valuations. As you note above, the appraisal is as of the effective date and cannot foresee the market in X future date. But neither can an alternative valuation. Therefore, the credit side of the borrower's product cannot improve the risk ratio (though overvaluation in either an appraisal or alternative value can put the borrower more at risk due to underwatre/loss of equity.)

Lenders rely on collateral valuation to assess property risk. By shifting the agenda that the appraisal was no better than other valuations in foreseeing borrower default risk, the regulators were convinced to use waivers or alternative valuations. This was a false equivalence imo. The risk is the first-day valuation as of effective dates; was the subject analyzed for MV using sound development, etc. How could anybody possibly say the value of a property on a waiver, estimated by a borrower, is sounder as of the date of valuation decision than an appraisal? It would take years to see enough damage, if any in the future.
Once these decisions are made at scale, billions and trillions are made over a period of years until it gets so bad a correction is needed. By the time a slap-of-the-wrist penalty occurs, the lenders and AMC 's and affiliates have made so much money it does not matter. The taxpayers are left holding the bag, and any communities impacted by RE market prices being skewed have to deal with the loss.

 

[Dublin ohio]

Right, because a 40' wide by 150' deep lot has the same value as a 60' x 100' lot in the same subdivision. SMH.

So how do you and the Fern discern the difference now. Lot dimensions do not appear on the grid

 

[HVNY]

Another lender telling me that they are moving 100% to 3.60 end of September. So the software companies have a month to figure it out. It's crunch time - they had 8 years...?

 

[Fernando]

So how do you and the Fern discern the difference now. Lot dimensions do not appear on the grid

I agree with OSU for once (shocking). There is a difference between 40' and 60' frontage depending on the market.
Experienced appraisers know this even if not on an appraisal form.
The newbie and future appraisers who will be using the 3.6 will not considered this since the form doesn't address it.
3.6 suppose to be detail enough to consider all aspects of appraising but still falls short.