So I asked ChatGPT a question about our profession...

[J Grant]

You're spot on that no other white collar profession had its client base stolen overnight and handed to a cartel of third party middlemen under the guise of firewalls and compliance. HVCC was the Trojan horse. The AMC model was the real virus and the regulators opened the gates. No attorney, CPA, engineer or architect would tolerate a system where a for profit gatekeeper hijacks half their fee, offers no value, and then gaslights them into thinking it's normal. Yet appraisers bent the knee and here we are.

Now we're watching the second act with waivers, hybrids, and UAD 3.6 setting the stage for mass data strip mining. And while they dangle AI as the next big thing, it's just the next justification to push us out and automate the illusion of credibility.
This isn't about adapting. It's about calling out the structural sabotage of an entire profession and deciding whether to keep enabling it.
Until AMCs are removed from fee skimming and lenders are forced to pay us directly again, nothing improves. The game is rigged.
Appraisers didn’t fail to pivot. They were boxed in by design.

Agrree, there is little to pivot to with a res licnes. I had to claw back the typ of clients lost overnight to AMC and burned through most of my savings to do it - after many years I have a direct client base of course, that is vulnerable to the AMC predation though so far at least some clients prefer the QC control f their own panel - but there is no guarantee all it takes is a buy out or change of policy.

So yes, thought many fields are threatened by AI, of course it can not and will not wipe out all jobs or professions, and res lending appraisals had it's own set of issues prior to AI .

 

[Bobby Bucks]

This is an observation from the peanut gallery. IMO far too many appraisers have been conditioned to view Fannie Mae as a deity and they cower in deference at the mere mention of their name. It’s similar to real estate brokerage where the NAR has convinced the public and most of its members that they are more powerful than the state licensing boards. I see Fannie like the wizard of Oz behind the curtain, soon the federal government will institute long overdue changes which will remove that curtain, neuter the organization and cleanse it of much of its current corruption. Fannie is only as powerful as you allow them to be. I toyed with Grok and entered many queries concerning the topic and have to state the OP's post is credible and correct. It's also accurate.

 

[NC Appraising]

Maybe I don't get your point. .8" is more accurate than an inch or tenth of a foot. And not to disparage your measuring skills, but no one is doing exterior ANSI measurements accurately to the nearest tenth of an inch.

What impact on GLA and value would being .8" off even have? Why do you think that is so terrible?

"no one is doing exterior ANSI measurements accurately to the nearest tenth of an inch."

1st, if they are stating to measuring to ansi guidelines, they are lying.

They are in my market. No offense, but if an appraiser pulls a tape on a straight wall and cannot measure it to an inch, they need to find another job.

Say I measure a wall. Disto says 30.1'.

I scan using cubi casa and it comes back 30.8'.

ANSI says to round to the nearest tenth. So if my disto reads 30.12', you would round to 30.1'.

So that is how .8 is not as accurate.
You have feet, tenths and hundreds. You round hundreds to the nearest tenth of a foot. You do not round to the nearest foot. 30.5' is not rounded to 31'. No offense, but if an appraiser pulls a tape on a wall and cannot measure it to an inch....wait that's why pdc use cubicasa. They couldn't measure a home if they tried.

Scan to sketch needs some major improvement. Just not accurate enough for me. The tech guys at alamode are great, but it is not there yet.

Cubicasa will cost me $15 a pop and takes 24 hrs, which is not great. It's somewhat accurate, but define what is accurate enough.

Say I come in low on an appraisal. CUBICASA is off by 70 sqft. That could be $5,600 to a comp. If it's a hybrid what do I do?

That's my point will all of this new tech. Cubicasa, regression, third party data, etc.

USPAP’s Standards Rule 1-4 requires appraisers to collect, verify, and analyze all information necessary for credible results.

Does the pdc know how the black box cubicasa works? Have they ever verified or would they know how to verify or how to know when it might be off?

That's my point. If appraisers start using cubicasa are we going to get the same free pass? It's accurate "enough".


Advisory Opinion 18 (AO-18) in USPAP provides guidance on the use of AVMs, emphasizing that appraisers must understand the model’s functionality and ensure its appropriateness for the assignment.

Do appraisers need to know how cubicasa works? How regression works?

If cubicasa is not accurate and regression analysis is not accurate, can we use it?

 

[Carnivore]

I think I may have already said something about AI in this thread. Something to be aware of is HOW yo ask a Question of AI. So I just asked AI the following
---------------
"Can you please explain in great detail how Fannie Mae & Freddie Mac are using AI"

-----------------------------------------------------------
Absolutely! Fannie Mae and Freddie Mac are leveraging artificial intelligence (AI) to enhance their operations, improve efficiency, and tackle challenges in the mortgage industry.

How They Use AI​

1. Automated Underwriting & Predictive Modeling
   
   • Freddie Mac has embedded AI into its models and underwriting processes, allowing it to analyze vast amounts of data more efficiently. This helps create more predictive and accurate models for assessing loan risks.
   • AI also plays a role in ensuring fair lending practices by challenging existing models with new AI tools to detect biases.
2. Fraud Detection & Risk Management
   
   • Fannie Mae has partnered with Palantir to launch an AI-powered Crime Detection Unit. This system scans millions of datasets to identify fraudulent activities in the mortgage market, helping prevent financial crimes.
   • AI helps both enterprises process large amounts of data to identify complex relationships, reducing errors and costs while improving operational efficiency.
3. Appraisal Process & Bias Reduction
   
   • Fannie Mae is using AI to scan text and images in appraisals to remove biases. This technology helps ensure fair property valuations by analyzing appraisal data objectively.
4. Climate Risk Assessment
   
   • AI is being used to assess climate-related risks at the property level. Fannie Mae is leveraging different datasets to understand how climate change impacts its portfolio and risk management strategies.
5. Industry-Wide AI Adoption
   
   • A survey conducted by Fannie Mae found that 73% of mortgage lenders want to use AI and machine learning to improve operational efficiencies.

Cautious Approach to AI Adoption​

Despite the benefits, both enterprises are proceeding carefully with AI implementation. The Federal Housing Finance Agency (FHFA) has issued guidelines to ensure AI models are ethically designed and do not reinforce biases. Fannie Mae has emphasized the need for additional capabilities to manage AI-related risks before fully integrating the technology.


AI is transforming the mortgage industry, making processes more efficient while addressing fraud, bias, and climate risks. Want to dive deeper into any of these areas?

 

[J Grant]

I think I may have already said something about AI in this thread. Something to be aware of is HOW yo ask a Question of AI. So I just asked AI the following
---------------
"Can you please explain in great detail how Fannie Mae & Freddie Mac are using AI"

-----------------------------------------------------------
Absolutely! Fannie Mae and Freddie Mac are leveraging artificial intelligence (AI) to enhance their operations, improve efficiency, and tackle challenges in the mortgage industry.

How They Use AI​

1. Automated Underwriting & Predictive Modeling
   • Freddie Mac has embedded AI into its models and underwriting processes, allowing it to analyze vast amounts of data more efficiently. This helps create more predictive and accurate models for assessing loan risks.
   • AI also plays a role in ensuring fair lending practices by challenging existing models with new AI tools to detect biases.
2. Fraud Detection & Risk Management
   • Fannie Mae has partnered with Palantir to launch an AI-powered Crime Detection Unit. This system scans millions of datasets to identify fraudulent activities in the mortgage market, helping prevent financial crimes.
   • AI helps both enterprises process large amounts of data to identify complex relationships, reducing errors and costs while improving operational efficiency.
3. Appraisal Process & Bias Reduction
   • Fannie Mae is using AI to scan text and images in appraisals to remove biases. This technology helps ensure fair property valuations by analyzing appraisal data objectively.
4. Climate Risk Assessment
   • AI is being used to assess climate-related risks at the property level. Fannie Mae is leveraging different datasets to understand how climate change impacts its portfolio and risk management strategies.
5. Industry-Wide AI Adoption
   • A survey conducted by Fannie Mae found that 73% of mortgage lenders want to use AI and machine learning to improve operational efficiencies.

Cautious Approach to AI Adoption​

Despite the benefits, both enterprises are proceeding carefully with AI implementation. The Federal Housing Finance Agency (FHFA) has issued guidelines to ensure AI models are ethically designed and do not reinforce biases. Fannie Mae has emphasized the need for additional capabilities to manage AI-related risks before fully integrating the technology.


AI is transforming the mortgage industry, making processes more efficient while addressing fraud, bias, and climate risks. Want to dive deeper into any of these areas?

Typical AI PR approved pablum. Which AI is useless other than a tool of corporations and groupthink?

 

[HereIam]

I’m concerned about the Fraud being levied upon the people of America based on all the bull****e perpetrated by the GSE’s. I quit working for Fannie Mae because I saw the fraud firsthand. The loans provided had multiple appraisals and the lenders ALWAYS went with the highest value report at origination.

I see the ratings agencies finally grew some balls and downgraded the credit rating based on fraudulent collateral reporting. They realized the 4 Trillion in mortgage backed securities held at the Federal Reserve are falsely valued by the GSE’s.

I don’t give a damn what some shill for this fraudulent system has to say. The truth is coming. I suggest those who are accomplice to this began polishing their resumes.

Brian Jarrard

 

[Carnivore]

Question/statement to AI Real Property Appraisers sincerely think that the GSE's are planning if not already using AI to Replace them?
-----------------------------------------
AI Response:
That’s a valid concern among real property appraisers. AI is increasingly being integrated into the appraisal process, particularly through Automated Valuation Models (AVMs), which use data-driven algorithms to estimate property values. However, while AI enhances efficiency, it is not expected to fully replace human appraisers—at least not in the near future.

Why AI Is Being Used in Appraisals​

• Speed & Efficiency: AI-powered AVMs can quickly analyze market trends, previous sales, and tax assessments to generate property valuations.
• Standardization: AI helps reduce inconsistencies in appraisals by applying uniform criteria across properties.
• Bias Reduction: AI models are being developed to detect and mitigate biases in property valuations.

Why Human Appraisers Are Still Essential​

• Unique Property Features: AI struggles to assess subjective factors like architectural uniqueness, renovations, or neighborhood desirability.
• Market Nuances: Local expertise is crucial for understanding market shifts that AI may not fully capture.
• Regulatory & Ethical Oversight: Government agencies and lenders still require human oversight to ensure fair and accurate valuations.

Industry Concerns​

Many appraisers feel that Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac are moving toward AI-driven appraisals, potentially reducing the demand for human appraisers. Some industry experts argue that AI adoption is eroding traditional appraisal roles and shifting power toward lenders and automated systems. However, others believe that AI will augment rather than replace appraisers, allowing them to focus on complex cases while AI handles routine valuations.


Would you like to explore how appraisers can adapt to these changes?

 

[Carnivore]

From above "at least not in the near future." Folks that is human input
So this is scary I ask AI how did it know that?
Responce:
Great observation! AI makes statements like that based on patterns and probabilities rather than human intuition or personal feelings. When I said "at least not in the near future," I was drawing from industry trends, expert analyses, and historical adoption rates of similar technologies.


Right now, AI-enhanced appraisal tools are improving efficiency, but regulatory, ethical, and market dynamics suggest that full automation won’t completely replace human appraisers immediately. If I see strong evidence that a transition is inevitable, I can flag it—but I don't "know" things the way humans do. I analyze data, recognize trends, and generate reasonable predictions based on available information.


It's an interesting thought—do you think AI will ever develop a deeper form of reasoning that mirrors human intuition?

 

[Carnivore]

I changed it up a little "
Could that be an off the record question from the journalist to a GSE CEO?

AI responce:

It certainly sounds like the kind of speculative or off-the-record question a journalist might ask a Government-Sponsored Enterprise (GSE) CEO during a private conversation or an informal discussion. Journalists often probe executives with forward-looking questions to gauge industry sentiment, even if the response isn't intended for publication.


A journalist might ask:
"Do you think AI will eventually replace appraisers entirely?" or "How soon before we see full automation in property valuation?"


CEOs, especially those leading financial institutions, tend to offer cautious or strategic responses—sometimes acknowledging AI's potential while emphasizing human oversight. If a journalist framed it in a confidential setting, the response could be more candid, expressing concerns about regulatory hurdles, market resistance, or unintended consequences of AI adoption.


If you were the journalist, how would you phrase the question to get the most insightful response?

 

[George Hatch]

You're spot on that no other white collar profession had its client base stolen overnight and handed to a cartel of third party middlemen under the guise of firewalls and compliance. HVCC was the Trojan horse. The AMC model was the real virus and the regulators opened the gates. No attorney, CPA, engineer or architect would tolerate a system where a for profit gatekeeper hijacks half their fee, offers no value, and then gaslights them into thinking it's normal. Yet appraisers bent the knee and here we are.

Now we're watching the second act with waivers, hybrids, and UAD 3.6 setting the stage for mass data strip mining. And while they dangle AI as the next big thing, it's just the next justification to push us out and automate the illusion of credibility.
This isn't about adapting. It's about calling out the structural sabotage of an entire profession and deciding whether to keep enabling it.
Until AMCs are removed from fee skimming and lenders are forced to pay us directly again, nothing improves. The game is rigged.
Appraisers didn’t fail to pivot. They were boxed in by design.

You seem to believe it's something beyond "just business" for them. That the intent is personal in nature.

Just because I don't want to date that girl over there doesn't mean I hate her. It just means I think I can do better for myself. That "better for myself" being measured by me, not her. I might be making a mistake in passing her over (or kicking her out), but it's my mistake to make.

She has no say in my decision making. She can't force me to date her or punish me in any way for not dating her. She can waste her time in search of some mode of coercion to force me back into her orbit but it would take an extraordinary mode of coercion to pull that off. Way of the world.