Why the New UAD is DOA

[shrubberyvaluation]

Doomsday day scenario....

In 2026 a quarter to a half of the appraisers call it quits.

The top lenders in the country calls the GSEs to complain. We can't find any appraisers. Similar to what happened with rural areas.

The GSEs do not have to use appraisals.

The GSEs ramp up avms with pcr or waivers.

The appraisers left in the biz will get the 30% of the complex or value related appraisals.

So if the new UAD doesn't work out, that can be their back up plan.

The big mortgage bankers would much prefer the dooms day back up plan. It would pretty much guarantee the demise of the appraiser and they would get their instant mortgage that they want.

I'd wager the UAD is meant to fail, and it failing is actually success for them.

 

[alebrewer]

I hope you're right, but I have to seriously wonder if the decision makers listen or even care what individual appraisers think regarding the new UAD.

If you and 35 are referring to DWiley and JAlexander, they don't have any say so anyways. Their job is to execute the will of the FHFA and those that run the GSE's. And if they dug their heels in and said, "No - by god we're not gonna screw the appraisers any more." They would: (a) get little more than a pat on the back from their fellow appraisers (as there's really not much more to be given), and (b) other appraisers - just as qualified as they - would step in in two shakes of a lamb's tail.

 

[Sadie]

Willing appraisers aren’t the hold up: There still isn’t a street ready 3.6 software or mobile app. AIVRE and SREP have completed the “verification” process but that doesn’t mean crap for an appraiser who wants to start the game. Does anyone think the software companies will be ready for “broad” release next month?

The major software companies have either been verified or have submitted their products to Fannie for verification. ACI submitted and I believe had a few fixes they needed and I bet Alamode is in a similar spot. What they all need is to shadow actual appraisers from receipt of assignment to completion. What they have now is pretty unworkable. The first company to get it to a point that we can actually complete a USPAP compliant report in a reasonable amount of time will get the lion's share of the appraiser clients. And while I am sure the software companies know this, they are not taking it very seriously.

 

[Sadie]

I'd wager the UAD is meant to fail, and it failing is actually success for them.

I see this as a grab by the AMC's. "poor lender, don't worry about the 3.6, we will take care of it for you. Just sign here"

 

[Sadie]

Define everyone. If you mean the cheerleaders in the echo chamber, what do you expect from them? It's like they watched to much Opra and are trying to speak 3.6 into existence. Every bank dept manager/reviewer, UW, LO, etc. I've spoken to has zero idea other than they heard something is brewing.

The talking heads are paid to cheerlead, but in the end if this threatens to hold up production it will get postponed. Production always wins.

My direct lender clients are aware and completely dreading the change.

 

[Sadie]

I’m going to be the first appraiser to do the new form using only VR goggles

They need to have smell o vision to really get it right.

 

[alebrewer]

The major software companies have either been verified or have submitted their products to Fannie for verification. ACI submitted and I believe had a few fixes they needed and I bet Alamode is in a similar spot. What they all need is to shadow actual appraisers from receipt of assignment to completion. What they have now is pretty unworkable. The first company to get it to a point that we can actually complete a USPAP compliant report in a reasonable amount of time will get the lion's share of the appraiser clients. And while I am sure the software companies know this, they are not taking it very seriously.

I do think you are on to something Sadie - first ones w a viable product will have a leg up. Then it will be obsolete by the end of 2026...

 

[Sadie]

I do think you are on to something Sadie - first ones w a viable product will have a leg up. Then it will be obsolete by the end of 2026...

I hate change, but I will drop my software company in a heart beat if they can't get their ish together.

 

[J Grant]

There must be a reason the software companies are having such difficulty - I suspect the functionality of a drop-down format filled out in real time ( which is how cloud-based BPOs are filled out,) transposed to software forms that are stable and stored in the user's computer, might be fundamentally incompatible? - like welding half a boat onto a four-wheel chassis and expecting it to drive like a car -

 

[J Grant]

1. System Integration & APIs:
   • BPO platforms (like Pavaso or vendor portals) and appraisal software (like A la Mode, FNC) use different Application Programming Interfaces (APIs) or lack seamless integration, meaning data doesn't translate smoothly.
2. Dropdown Specificity:
   • BPO dropdowns are often limited (e.g., "Yes/No," "1-4 Units") while appraisal software needs context-specific data, making generic dropdowns insufficient.
3. Workflow & Data Flow:
   • BPOs are often quick, manual entries; appraisals involve deep market research and complex algorithms. The data required in the BPO's simple dropdowns simply doesn't map to the structured, relational database fields in appraisal software.

In essence, you're trying to pour detailed, nuanced appraisal data into a simpler, pre-defined BPO bucket, and the dropdowns, designed for quick entry, lack the specificity or structure needed for the sophisticated appraisal software.

My comment - the above is from a quick AI look up- I am not a coder or computer tech person by any means,'I have though
in the three ( 3 was enough ) online web or cloud-based BPO's which immediately seemed similar
to the drop-down filled out in real-time format of UAD 3.6.-

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