The New Appraisal Industry

[George Hatch]

Who did what?

The appraiser's SOW is limited to a desktop process that doesn't include them performing a personal inspection. That's what they're going to be held to account for.

 

[djd09]

the sow cannot be so limited to not produce credible results...hello paschal

 

[J Grant]

Who did what?

The appraiser's SOW is limited to a desktop process that doesn't include them performing a personal inspection. That's what they're going to be held to account for.

But the value opinion is based on the reports from the PDC collector - and if the reported features, defects, or sf breakouts are off, the appraiser can be blamed for the value being off.
Post #200 nailed it - half the time the subject is either better or worse in person, regardless of how good the online interior photos and other data are. An appraiser can never know what they personally might have valued and observed had they gone on the inspection.

 

[djd09]

February 12, 2026

Pressley Underscores Harm of Racial Bias in Home Appraisals, Urges Reform of Appraisal System to Ensure Equity, Accountability​

“Black families who sought homeownership were held back by red tape, limited to redlined neighborhoods and faced blatant racism from banks.”

“And for those who managed to secure a mortgage and buy a home, the value of their homes was grossly diminished by an appraisal system rife with racial bias, and that same appraisal system is around today.”

Pressley Legislation Would Promote Equity, End Bias in Home Valuations

Video (YouTube)

WASHINGTON – During a House Financial Services Committee hearing this week, Congresswoman Ayanna Pressley (MA-07) laid plain the harmful discriminatory nature of the home appraisal process that has disadvantaged many current and aspiring homeowners—especially homeowners of color, across the country and in Boston. Rep. Pressley pushed for essential reform to modernize the appraisal process, strengthen transparency and accountability, and help families challenge bias valuations.

In November 2025, on National Housing Day, Rep. Pressley introduced the Appraisal Modernization Act, legislation to promote equity and combat systemic bias in the home appraisal process. The Senate companion legislation is being led by Senator Raphael Warnock (D-GA). Bill text is available here.

A transcript of Congresswoman Pressley’s remarks is available below, and the video is available here.

https://pressley.house.gov/2026/02/12/pressley-underscores-harm-of-racial-bias-in-home-appraisals-urges-reform-of-appraisal-system-to-ensure-equity-accountability/

we cant go on together...with suspicious minds

 

[Surf Cat]

Pressley Underscores Harm of Racial Bias in Home Appraisals, Urges Reform of Appraisal System to Ensure Equity, Accountability​

“Black families who sought homeownership were held back by red tape, limited to redlined neighborhoods and faced blatant racism from banks.”

“And for those who managed to secure a mortgage and buy a home, the value of their homes was grossly diminished by an appraisal system rife with racial bias, and that same appraisal system is around today.”

Pressley Legislation Would Promote Equity, End Bias in Home Valuations

Video (YouTube)

Interesting..... the YouTube comments sections are "turned off".

While Members of Congress do not take direct public questions during official legislative sessions, they are expected to engage with constituents through other established and accessible channels.

we cant go on together...with suspicious minds

We're caught in a trap....

 

[George Hatch]

But the value opinion is based on the reports from the PDC collector - and if the reported features, defects, or sf breakouts are off, the appraiser can be blamed for the value being off.
Post #200 nailed it - half the time the subject is either better or worse in person, regardless of how good the online interior photos and other data are. An appraiser can never know what they personally might have valued and observed had they gone on the inspection.

The appraiser is accountable for what they actually did. Not for what someone else did. We even certify to those limitations in every appraisal report we sign. The unlimited liability for 3rd party data accuracy that some of you fret doesn't exist. It has never existed. The "to the best of my knowledge and belief" in our certs goes all the way back in SR2.



Meanwhile every appraiser here has performed 2055s via distant observation from the street and without ever stepping foot on their subject property. They're not getting sued for their assumptions they're making in those assignments about the data they're using, either.

 

[George Hatch]

I'm doing a desktop appraisal on an 8-un apartment property over the weekend. Nobody is going to hassle me for using that SOW or for the assumptions I am making.

 

[J Grant]

These are results for is the appraiser responsible for the third party pdc collector information







AI Overview



+4



Yes, appraisers are ultimately responsible for the reliability and credibility of data used in their reports, including information gathered by a third-party Property Data Collector (PDC)
. While Freddie Mac states the lender is responsible for the accuracy of the PDR, appraisers must still review and verify this third-party information.
Freddie Mac Single-Family +2
Key Responsibilities and Considerations:

• Verification Duty: Appraisers must review the PDC report for accuracy and reliability, often having to contact the collector if they have questions.
• Liability: Despite using third-party data, appraisers are generally considered liable for the content of their appraisal report.
• Usage Risks: Relying on potentially incorrect, externally provided data (e.g., sketches, photos) can lead to inaccuracies in the final valuation, creating risks for the appraiser.
• Independence: PDCs must be independent, and appraisers may not work with PDCs selected by the borrower.
  Fannie Mae Single Family +4

While some industry feedback suggests that using third-party data could increase, rather than decrease, the time and effort required for an appraisal due to the need for verification, the appraiser’s responsibility remains to ensure the data is credible.
Working RE Magazine

 

[George Hatch]

the sow cannot be so limited to not produce credible results...hello paschal

An example of a too-limited SOW would be skipping a sales comparison approach in the appraisal of a subdivision home where there are lots of comps, or skipping an income approach on an income-driven property despite the availability of comparable data.

Not performing a personal inspection could only be characterized as "too limited" if it was inconsistent with that type of assignment and its user-driven requirements, in which case the deficiency is in not meeting the expectations for the assignment.

If there are users who are using this desktop or hybrid type of assignment and if there are appraisers who are performing those assignments then that combo meets the 2-part test for "reasonable SOW decisions" in the SOWR.

 

[George Hatch]

These are results for is the appraiser responsible for the third party pdc collector information







AI Overview



+4



Yes, appraisers are ultimately responsible for the reliability and credibility of data used in their reports, including information gathered by a third-party Property Data Collector (PDC)
. While Freddie Mac states the lender is responsible for the accuracy of the PDR, appraisers must still review and verify this third-party information.
Freddie Mac Single-Family +2
Key Responsibilities and Considerations:

• Verification Duty: Appraisers must review the PDC report for accuracy and reliability, often having to contact the collector if they have questions.
• Liability: Despite using third-party data, appraisers are generally considered liable for the content of their appraisal report.
• Usage Risks: Relying on potentially incorrect, externally provided data (e.g., sketches, photos) can lead to inaccuracies in the final valuation, creating risks for the appraiser.
• Independence: PDCs must be independent, and appraisers may not work with PDCs selected by the borrower.
  Fannie Mae Single Family +4

While some industry feedback suggests that using third-party data could increase, rather than decrease, the time and effort required for an appraisal due to the need for verification, the appraiser’s responsibility remains to ensure the data is credible.
Working RE Magazine

I post screengrabs from the source material. I usually don't even post AOs or FAQs because they're not the same thing as USPAP. Meanwhile, you have been posting someone else's opinion as scavenged by your AI. It's not even your own reasoning.

Even if there's some overlap between the two, in the event of any conflict the call goes to the source material. Which is why I am using it.