UAD 3.6 floorplan required?

[Carnivore]

The rise of hybrid appraisals, GSE automation, and slower market volume have converged to create a fee compression spiral, especially in residential sectors.
What's Driving the Fee Decline
• Oversupply of Appraisers: After years of pipeline expansion and licensing incentives, many markets now have more appraisers than active assignments—especially in areas where hybrid models dominate.
• Reduced Scope = Reduced Pay: Hybrid appraisals often pay 30–50% less than traditional full inspections, yet still require the appraiser’s signature and liability.
• Appraisal Management Companies (AMCs): These intermediaries often squeeze fees while controlling assignment flow, creating a race to the bottom in competitive markets.
• Volume Volatility: With interest rates stabilizing and fewer refinances, the overall number of appraisal orders has dropped, intensifying competition for each job.

 

[J Grant]

The rise of hybrid appraisals, GSE automation, and slower market volume have converged to create a fee compression spiral, especially in residential sectors.
What's Driving the Fee Decline
• Oversupply of Appraisers: After years of pipeline expansion and licensing incentives, many markets now have more appraisers than active assignments—especially in areas where hybrid models dominate.
• Reduced Scope = Reduced Pay: Hybrid appraisals often pay 30–50% less than traditional full inspections, yet still require the appraiser’s signature and liability.
• Appraisal Management Companies (AMCs): These intermediaries often squeeze fees while controlling assignment flow, creating a race to the bottom in competitive markets.
• Volume Volatility: With interest rates stabilizing and fewer refinances, the overall number of appraisal orders has dropped, intensifying competition for each job.

The important thing to recognize is that the AMCs use the above realities to pressure fees down; the lenders or other clients do not do this. The AMC's source of compensation for appraisal management depends on the AMC taking as much as they can on each order from the borrower-paid fee, (as the third party split allowed on the HUD bundeled fee)

Overall, the GSE's decisions to use PDC collectors for inspections and to use WAIVERS will adversely affect income - if there is 30% less volume to be had, regardless of fees, the income goes down 30%.

 

[Airstream]

T

Imo, if the GSEs want supportive "proof" or evidence of adjustments, especially for market trends, then they should refine the MC form and make it so that every appraiser uses the MC form only because then at least teh program is consistent. All they need to do is break down the first six months into two quarters, and reuse TWO MC forms - one for the specific subject market of competing properties, which often is a far smaller data set, and another MC form for a relevant area market trend.

The way it is now, with different software offerings and a large difference among how appraisers select the data, can really skew results, both in trend and in other adjustments.

This is actually what I do. I use the 1004MC for the entire market neighborhood, and then analyze the Realtor statistics from the state. And frankly I don’t know why they didn’t think of this earlier. Then as you say, there would be some consistency.

As to multiple licenses, frankly not a bad idea. I sold real estate and appraised for a number of years. When I look back on it, I really wish I had not given up the sales part. The biggest problem with selling is weekend work. Didn’t want to do it. But I actually made the best money when I did both.

At some point this market is going to unlock, and there will be more than enough work. But I’m glad I am retired and dabble at appraisals. By the way, I gave up clipboards long ago. I haven’t used them for 20 years.

 

[Cob]

My conclusion is all those industry notables who have been saying “the clipboard is dead” for the last 10 years stand to gain financially from the sale of new gadgets constantly entering the market. This industry is infested with hucksters selling products that line their pockets while claiming everyone else is using them and if you don’t, you’re a Luddite.

Wait, so you're telling me that yet another change is not going to benefit the appraiser and companies are going to try to make money off of the changes?????