Why the New UAD is DOA

[ZZGAMAZZ]

I hear you, and it is that kind of direct and technical analysis that I believe AI has use. When it comes to opinions, however, I think AI will forever fall short.

AI may can analyze numbers, but it can't feel anything. There is no intuition. How can it appreciate what's seen or criticize what is smelled?

I asked ChatGPT several questions about its protocol, whether it responds to the user's civility, whether a user should be polite, etc., etc. The answers sure seemed sincere although the response emphasized that the response was not personal because the AI has no personality. I didn't know...

 

[ZZGAMAZZ]

Just to settle it all, I just count with my fingers, no toes. I'm a visual kind of guy.

F, come clean please. If the true count is, say, 35, and you think it should be 44, which number do you report???????

 

[Tim Hicks (Texas)]

All those documentaries (Terminator 1, 2 and 3) about SkyNet and we continue to plow forward with AI development

 

[Non Sequitur]

He may be right about 3.6 being delayed again. The GSEs and 3.6 cheerleaders declared victory last month when the first 3.6 report was delivered Nov 14. So here we are, three weeks later and not a second one. But we are supposed to believe tens of thousands of 3.6 reports will appear like magic for broad production beginning Jan 26, 2026. What a debacle.

 

[glenn walker]

Millions done 1 at a time not a big deal each may initially add from two to five days in delay but after the appraisers first 10 his/her speed will get close to the old UAD. The Underwriters look at up to ten a day and in 30 days they will have it down to a science.

The market timing was perfect because mortgage volume is lower than ever and everyone has more time to learn it. The 25 to 50 year olds won't have a problem but many 60 or older will give up and call it quits they can learn but it's the final straw emotionally to break the camels back.

 

[Non Sequitur]

Millions done 1 at a time not a big deal each may initially add from two to five days in delay but after the appraisers first 10 his/her speed will get close to the old UAD. The Underwriters look at up to ten a day and in 30 days they will have it down to a science.

The market timing was perfect because mortgage volume is lower than ever and everyone has more time to learn it. The 25 to 50 year olds won't have a problem but many 60 or older will give up and call it quits they can learn but it's the final straw emotionally to break the camels back.

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?

 

[Dublin ohio]

Does anyone think the software companies will be ready for “broad” release next month?

Let alone the lenders. Not a single one of my clients have said they are ready and most don't expect to be until mid year at the best

 

[glenn walker]

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?

Not a broad release but enough to get if rolling and by end of 2026 it will be fully operational that's what the majors are saying. Everyone seems very confident except the appraisers. The the new software's ready and Beta Tested now it's just a 6 to 8 months dripping it out and doing it in stages.

 

[jay trotta]

The fundamental problem with the use of AI in writing a report is that as professionals we have an obligation to understand how our tools work and what they have done to generate the results we are using in our analysis and because AI is a black box you cannot do that and thus you fail your ethical obligations when you use it.

The govmnt. is working on deleting the status of "professionals"........

Hmm......Ethical obligation and GSE do not mix well under any political regime

 

[Zoe]

The thing about real property is it is so dynamic. It is like snowflakes or that special woman or man you met. There are no two alike. AI can't picture that dynamic in many real estate markets. In cookie cutterville, AI can operate decently.

Even with identical twins or people that clone their pets, they are not identically alike. Real property market is very dynamic and unique. AI can work in cookie cutterville most likely to serve the intended use and user. But who needs a GSE then as someone mentioned earlier.

Investors can still buy the reits and AI support the commingled loans as investments.

I have had a premonition that the Federal government will own the gses eventually. AI will help that process occur.

AI won't eliminate the licensed appraiser. Residential appraiser would be harder for AI to eliminate than commercial appraiser imho. Residential real estate market is even more dynamic and diverse than commercial real estate market in many areas and the fact that commercial focuses so much on income cap approach.

AI can run discounted cash flow projections in a heartbeat for income cap approach. AI will get the rental data in local markets eventually. AI will be able to do a pro forma income/expense statement and income cap approach very soon in many markets.