Executive order on promoting access to mortgage credit

[Surf Cat]

I believe the future move is to send the homeowner a Lidar device in a Fed Ex package, have them measure their dwelling, take photos, answer a questionnaire, and upload the data to a website with their loan number and AI will do the rest. Plus, repackage the Lidar device and send it back with a prepaid shipping label.

No PDC, no appraiser, no mortgage broker....no output from the lender and the borrower has a perceived cost savings. Lenders standing alone at the top.

Home insurance is already doing this.

A news article I heard today.

Recent, high-profile predictions in March 2026 indicate that the unemployment rate for new college graduates could exceed 30% (reaching the mid-30% range) as AI agents increasingly automate entry-level white-collar work.

This grim forecast, shared by industry leaders like ServiceNow CEO Bill McDermott, stems from rapidly deployed agentic AI systems that are causing companies to slash costs, cut jobs, and significantly reduce hiring for beginners.


Affected Industries

Tech and Software: Junior software developer and IT support positions are being cut, with UK tech graduate positions projected to fall 53% by 2026 compared to 2024.
Finance & Accounting: The "Big Four" accounting firms have significantly reduced their intake of new graduates.
Marketing & Creative: Entry-level content creation is being rapidly automated.

Despite these forecasts, some leaders argue that while traditional roles will disappear, new roles tailored to AI management will eventually emerge, creating a long-term shift rather than a permanent apocalypse, though the transition period is causing significant immediate distress.

 

[Bobby Bucks]

This is yet another instance of where we really won’t know what is going until the Buzz interviews some washed up member of the Appraisal Institute who is an expert on everything RE related even though he’s upside down in a pi$whole townhouse that he overpaid for at the peak of the last bubble. What’s important is he’s 3.6 ready.

 

[Mark K]

Next will come the lowering of the lending standards so the vast number of "disenfranchised or disadvantaged people" can obtain a taxpayer subsidized, low interest loan with no money down. Hell, they'll probably hand out cash at closing to pay the first 6 months mtg payments.

And in a few years, after all of the first-payment defaults, the Dims will want complete loan forgiveness ala student loans.

OTOH, if the EO mandates that Black Rock and their ilk divest of millions of SFRs, I'm not opposed to that.

 

[Trihard]

Next will come the lowering of the lending standards so the vast number of "disenfranchised or disadvantaged people" can obtain a taxpayer subsidized, low interest loan with no money down. Hell, they'll probably hand out cash at closing to pay the first 6 months mtg payments.

And in a few years, after all of the first-payment defaults, the Dims will want complete loan forgiveness ala student loans.

OTOH, if the EO mandates that Black Rock and their ilk divest of millions of SFRs, I'm not opposed to that.

The "value" will be centralized on a government computer. The politicians will be able to manipulate that "value" in every possible way, including to buy votes.

 

[OSU Beavers]

Most of my work is investigating and correcting inaccurate MLS and public records data before I can use it in my analysis or on the adjustment grid.

Currently I cannot get Lidar to give me the same answer twice. All Lidar measurements should be calibrated with a tape and/or laser.

 

[Essexfenwick]

The appraisal "industry" is the asses end of the real estate economy and is not on anybody's radar. It has no advocates and nobody misses it except those practicing. It's amazing the mortgage side lasted this long. There will always be complex and legal work where a designation is desirable but that's a lot fewer people remaining.

 

[Tom4value]

Key phrase is, “shall consider”. In my 34 years of appraising, 34 years of being told I will be obsolete in 6 months, I have my doubts. “Shall consider” has always been associated with, “it’s a thought!” . Like, “do I want to go to a flea market on my day off? It’s a thought.”

 

[tennvol09]

The residential fee appraiser is a dead man walking. 3.6 is going to create a perfect storm of not enough appraisers adopting all while AI models are far better than most appraisers. To be fair, most residential appraisers are not great at their job. They make up adjustments with little to no consideration of market conditions and trends. This is not all appraisers, but a large segment. The timing of 3.6 with the emergence of AI is going to eliminate the residential appraisal for lending transactions on 90% of loans.

 

[Non Sequitur]

The residential fee appraiser is a dead man walking. 3.6 is going to create a perfect storm of not enough appraisers adopting all while AI models are far better than most appraisers. To be fair, most residential appraisers are not great at their job. They make up adjustments with little to no consideration of market conditions and trends. This is not all appraisers, but a large segment. The timing of 3.6 with the emergence of AI is going to eliminate the residential appraisal for lending transactions on 90% of loans.

Hard to argue with that. And I know people are flipping about the executive order that hit Friday, truth is there’s nothing in it that wasn’t already being worked on by players in the industry who want to replace independent appraisers. It may fast forward some of the initiatives, but it didn’t create them.

 

[RCA]

Lawsuits over inaccurate appraisals seem to be a potential area of income. --- Only you will need a rock-solid appraisal methodology.