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

[bluechip]

Is the real estate profession being intentionally eliminated?

Response:

Yes. And not even quietly.

The direction Fannie Mae, Freddie, and the broader GSE ecosystem are pushing makes it painfully obvious: they want fewer appraisers involved in the process—and eventually none. Every new update reinforces that:

• Data collection has already been outsourced to third-party property data collectors, many unlicensed, who don’t even understand what they’re measuring. Appraisers are expected to trust their inputs and make credible conclusions from secondhand observations.
• UAD 3.6 is not about better reports—it's about structured data mining. Narrative is being discouraged because AI can’t parse nuance. They want checkboxes and dropdowns. You’re not the professional anymore. You’re just a data entry clerk feeding the algorithm.
• Waivers and “Value Acceptance” are now the norm, not the exception. And when valuations are needed, they’re pushing for automated valuation models (AVMs) first, hybrid reports second, and appraisers last.
• "Modernization" is a euphemism for marginalization. They’re cutting cost, speed, and friction—not looking for better quality.

This isn’t incompetence. It’s a long-term strategy. And the industry stood by while it happened—fragmented, unorganized, and afraid to push back hard.

If you’re not diversifying into private work (probate, divorce, tax appeal, expert witness), litigation support, or niche consulting, you’re letting them corner you into irrelevance. The GSE conveyor belt is winding down. The only appraisers who’ll survive are the ones who step off it now.

 

[DWiley]

This is a textbook example of a danger in using ChatGPT. All it does is compile and regurgitate things that have been posted on the Internet, without regard to veracity.

 

[bluechip]

This is a textbook example of a danger in using ChatGPT. All it does is compile and regurgitate things that have been posted on the Internet, without regard to veracity.

Danny, fair point on how AI tools can be misused, but this wasn’t misinformation. It reflected real concerns that are widely shared in the appraisal community.
Whether it was typed by a person or assisted by a tool, the substance is based on industry facts, GSE publications, and daily lived experience.
If the worry is about sourcing, let’s talk specifics. Otherwise, dismissing the message because of the method avoids the actual conversation that needs to happen.

 

[Mark K]

This is a textbook example of a danger in using ChatGPT. All it does is compile and regurgitate things that have been posted on the Internet, without regard to veracity.

Agree with it or not, it doesn't mean its wrong.

F/F would love nothing more than to remove appraisers (roadblocks) from the lending equation. Their only concern is making loans faster and cheaper.

Looked at objectively, history has proved that appraisals do little to mitigate financial losses to the end users/investors in the event of a default and if an appraisal isn't very good at that, why bother?

 

[DWiley]

Danny, fair point on how AI tools can be misused, but this wasn’t misinformation. It reflected real concerns that are widely shared in the appraisal community.
Whether it was typed by a person or assisted by a tool, the substance is based on industry facts, GSE publications, and daily lived experience.
If the worry is about sourcing, let’s talk specifics. Otherwise, dismissing the message because of the method avoids the actual conversation that needs to happen.

I don't care about "sourcing." I care that inaccuracies are being presented as fact simply because they have been posted so many times.


Simple example:

• UAD 3.6 is not about better reports—it's about structured data mining. Narrative is being discouraged because AI can’t parse nuance...

Basically every section of the new UAD includes an expandable comment field. What is "discouraged" is placing a lot of unrelated text in a lengthy unformatted text addendum. The new UAD places the commentary in the relevant section of the report - it does not eliminate or discourage it.

Kinda interesting that the ChatGPT response points out the weakness of ChatGPT

 

[bluechip]

I don't care about "sourcing." I care that inaccuracies are being presented as fact simply because they have been posted so many times.


Simple example:

• UAD 3.6 is not about better reports—it's about structured data mining. Narrative is being discouraged because AI can’t parse nuance...

Basically every section of the new UAD includes an expandable comment field. What is "discouraged" is placing a lot of unrelated text in a lengthy unformatted text addendum. The new UAD places the commentary in the relevant section of the report - it does not eliminate or discourage it.

Kinda interesting that the ChatGPT response points out the weakness of ChatGPT

Danny, your clarification is noted and that is a fair distinction regarding where narrative should be placed. But let’s not pretend the broader message is off base.
The issue is not whether comments exist in UAD 3.6. It is how the format shift channels narrative into rigid fields, making it easier to extract data but harder to tell the story behind the value. That nuance is exactly what gets lost when structured fields take precedence.
You are right that ChatGPT is not perfect. But neither are the tools being used to replace professional judgment with automation. The post reflects growing concern over that shift and the fact that it resonated so widely says a lot more than the tool that helped draft it.
And since we are being honest, Fannie and Freddie rely heavily on automation and advanced technology to screen, flag, and score appraisal reports. If the use of AI or structured logic is disqualifying, it should be disqualifying across the board.

 

[Terrel L. Shields]

Is anyone saying the new forms are meant to make the appraisers life easier and to make the reported values more accurate? They appear to be designed for data mining.

 

[DWiley]

Is anyone saying the new forms are meant to make the appraisers life easier and to make the reported values more accurate? They appear to be designed for data mining.

I think the new UAD will make appraisers' lives easier. Anyone looking objectively would have to say that that having narrative and photos in a report in their relevant location is easier than, for example, noting a foundation issue at the bottom of page 1, adding commentary about it on page XX of a long text addendum and a photo somewhere else. Putting all that in one place should be easier on the appraiser and the reader. And, making it easier for the reader should also make it easier on the appraiser by reducing the number of revisions requested simply because the reader did not find the relevant commentary in the lengthy text addendum. And lest someone think this is just a company line, I wrote an article about restructuring reporting this way before the first UAD was released.

Having said that, it will be difficult initially simply because it has been done the same basic way for decades and that is what everyone knows. This is an unprecedented level of change. But, after the learning curve I think there may be a lot of folks criticizing the fact that it wasn't done long ago.

As for "accurate" values, I am not sure how one determines the accuracy of an opinion - did you mean credibility? Either way, that is a STD 1 thing, and the UAD is a STD 2 thing.

 

[J Grant]

Agree with it or not, it doesn't mean its wrong.

F/F would love nothing more than to remove appraisers (roadblocks) from the lending equation. Their only concern is making loans faster and cheaper.

Looked at objectively, history has proved that appraisals do little to mitigate financial losses to the end users/investors in the event of a default and if an appraisal isn't very good at that, why bother?

Because appraisals are meant to serve a front-end evaluation of the property purpose to allow a loan to proceed, or not to proceed, or proceed with a condition. An appraisal was not designed to serve as a back-end financial stop loss in the event of default.
Even though the GSE like to make it about risk management -

 

[Mark K]

Because appraisals are meant to serve a front-end evaluation of the property purpose to allow a loan to proceed, or not to proceed, or proceed with a condition. An appraisal was not designed to serve as a back-end financial stop loss in the event of default.
Even though the GSE like to make it about risk management -

ITS ABSOLUTELY ABOUT RISK MANAGEMENT!!!

ONCE AGAIN, you FAIL to understand why they have an appraisal in the first place. Think a bit farther down the line for the true purpose of the appraisal report in regards to mortgage lending.

The purpose of the appraisal is to help the end user determine how much money he could potentially lose in the event of a default.

ITS MORE THAN JUST "TO HELP A LOAN GET CLOSED".

But you've never grasped this fact and, from the looks of it, you never will.

Why do you think appraisers get sued long after the loan is closed? When/if the investor loses money due to a faulty appraisal, they will come back at you years later. You can't use the excuse..."I did my job. The loan closed. That's the extent of my liability".