New Fannie/Freddie Forms

[Non Sequitur]

Saying which comps are the best and why is really basic stuff.

I'm not arguing whether weighting is basic. In UAD 3.6 Comparable Weight is now a grid line with three defined [standard] responses.

Now if anyone wants to drill into how answering "Most" to more than one comp makes any sense, that's a whole other debate. But I'm hoping most appraisers realize that can be covered in the reconciliation narrative. Still, along with detailing additional properties analyzed but not used, HERS ratings, etc. this is just one of many fields in UAD 3.6 that we will have to adapt to.

 

[Fernando]

Looking at the new form, we now have to consider adverse, beneficial, and neutral. Ugh.
Also, the form requires us to make more detail notes of abnormalities, defects of the home. This open us appraisers to more lawsuits when we miss something as an "observant inspector." Ugh.

 

[TerryRohrer]

CoreLogic/a la mode has been called many things, but obscure and unknown? I can't say I agree with that.

Below is a linky-dinky for UAD 3.6. The video, screen shot, and reference I posted earlier have no context in terms of prior selling guides. And BTW, accusing me of fabricating "standardized comp rating" is flat out false. Again, for those who actually read posts and follow links, UAD 3.6 has a grid field for Comp Weighting and the responses have been standardized as Most, Less, No Weight (with definitions in the published guidance).

Uniform Appraisal Dataset | Fannie Mae

The UAD and Forms Redesign initiative will leverage extensive stakeholder input to update the appraisal dataset, align it with the industry-standard MISMO® Reference Model Version 3.X, and overhaul the uniform appraisal forms to establish a more flexible, dynamic structure for appraisal reporting.

singlefamily.fanniemae.com

View attachment 96964

Where in the UAD documentation are all these standards revealed?

 

[Non Sequitur]

Increase per/appraisal time by 3 times, reduce income by the same amount. That is the real thing going on here. The extermination of appraising as a profitable business in pursuit of minutiae that have very little to do with what the buyers base their purchase decisions on ... why? "Because they can" (ie they have the software tech) ... been coming for a while ...

Ding-ding-ding-ding.

Thanks for ringing the bell. At this point the die has been cast, that bright light coming down the tracks is UAD 3.6. I can't attach the sample Fannie has published because the file is too large. But I encourage anyone who plans on staying in this business to click the link in a prior post and look for Appendix D-1: URAR Sample Scenarios and download the sample URAR. It's a beast.

 

[glenn walker]

Increase per/appraisal time by 3 times, reduce income by the same amount. That is the real thing going on here. The extermination of appraising as a profitable business in pursuit of minutiae that have very little to do with what the buyers base their purchase decisions on ... why? "Because they can" (ie they have the software tech) ... been coming for a while ...

I agree for a high volume residential appraiser whose been using a lot of canned comments etc this may slow him down substantially. The real question is does it really help establish a more reliable final opinion of value or just destroy what's left of the apprasers business model by making it impossible to make more than a minimum wage job.

 

[Non Sequitur]

Where in the UAD documentation are all these standards revealed?

I posted the link. And FWIW this isn't a big secret like the appraisal institute's membership numbers.

 

[TerryRohrer]

I posted the link. And FWIW this isn't a big secret like the appraisal institute's membership numbers.

I have no ownership in the appraisal institute's membership numbers so you have no argument with me. Nor are there any secrets, just call them and ask. Or speculate on that as well.

 

[Non Sequitur]

I agree for a high volume residential appraiser whose been using a lot of canned comments etc this may slow him down substantially. The real question is does it really help establish a more reliable final opinion of value or just destroy what's left of the apprasers business model by making it impossible to make more than a minimum wage job.

From what I've seen field work will be the real killer. The canned comments will be fewer but can be saved to a word doc for use. I do agree with you as far as the business model, things are a changin'. From what I've seen at the AMC Vegas Expo software providers are betting heavy that scan to sketch and a.i. photo recognition is the way forward.

 

[Non Sequitur]

A related blog article:

Alternate Reality: What if the GSEs Tried with Appraisers? | ValuSight Consulting

Thinking about how salesmanship could (?) have made things better...or not.

beyondthevalue.com

 

[Fernando]

While reviewing the new form, I was falling asleep. It's too much detail. I didn't sign up to be a bean counter.
The form makes all appraisers to consider all the details of subject like separate line being a corner unit, subjective adjustments for view and location, adjustment for rent control, etc.
I find it odd that Fannie didn't indicate whether ADU has permit or not and make adjustment for that.
I admit I would love to review the inspection reports and all the other disclosures (environmental, earthquake, dam, landslide, etc) but I knew my peers wouldn't doing it so I didn't do it.
To get accurate detail descriptions, seems like Fannie want all appraisers to do highest due diligence as expected from real estate agents and just below level of building inspector.
All appraisers should have considered these factors but Fannie forces every appraiser to consider everything.
Real appraisers know what to point out and find comps most similar to subject in shortest report possible.
Fun part has been the sales grid but it will take many pages before getting to the crux of the appraisal.
Not looking forward with this tedious new form.