Chat GPT For Fannie Form Appraisal Reports

By Dustin Harris

Excerpts: The world of real estate appraisal is constantly evolving (much to our dismay sometimes), and as professionals in this field, it is crucial to stay ahead of the curve by embracing innovative tools and technologies. ChatGPT is an advanced AI language model developed by OpenAI that can be used to streamline the appraisal writing process.

Can ChatGPT, and other AI models, actually assist appraisers in writing summary appraisal reports? The answer is, Yes! Here are some examples of real-life prompts I have used with success.

“Rewrite the following description of a house and property using brevity and professional language”

“Summarize all of these property descriptions into one, easy-to-read format with a professional tone for a real estate appraisal report.”

“I am a real estate appraiser completing an appraisal. For my square footage adjustment, I used a combination of paired-sales and sensitivity analysis to determine $65 a square foot was appropriate, but I did not adjust for differences between the subject and comparables if the difference was less than 100 square feet. Write a description of where the adjustment came from that I can use in the report.”

To read more, click here

My comments: Thanks to Dustin for writing this! I have been reading about using Chat GPT for appraisal marketing and narrative reports, but this is the first I have read about form reports.

Appraisal Business Tips 

Humor for Appraisers

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NOTE: Please scroll down to read the other topics in this long blog post on hybrid appraisals, business tips, UAD info from Freddie, Fannie modernization, non-lender appraisals, unusual homes, mortgage origination stats, etc.

To read more of this long blog post with many topics, click Read More Below!!


The Most Expensive Home in South Carolina’s History Hits the Market for $22M

Located in Simpsonville, SC, the 16,000-square-foot home sits on a sprawling 54 acres designed for the horse lover.

Dubbed Circle Creek Estate, the massive property features world-class equestrian amenities, including three riding arenas, and a 12-stall barn inspired by Old World Europe.

Built in 2014, the six-bedroom estate was designed to resemble an English manor. And while the stone home’s price tag is the steepest in the state, “the cost to recreate this property today would be north of $30 million,” according to the listing.

“The home was essentially hand-built from scratch, and it took two years to construct,” says listing agent Damian Hall, of Blackstream International Real Estate. “They used materials from all over the world to furnish it.

There is a street lamp from Central Park, stone planters from the Great Wall of China, and reclaimed cobblestones from a street in Pittsburgh. The stone mantels had to be assembled by crane, and there are giant beams in the den that came from a mill in South Carolina. Every piece of material used tells a story.”

To read more click here 


Guide to Property Data Collection (Version 6) From Fannie

April 2023

Excerpt: This document provides instructions for the individuals who perform the comprehensive data collection for residential properties following Fannie Mae’s property data collection standard. The instructions summarize Fannie Mae’s expectations for data collection for each data field in the standard.

These instructions are only designed to provide the minimum guidance necessary to complete the data collection process and do not represent a comprehensive guide to the data collection process.

The data table definitions include columns for Field Name & Instruction, Formatted Example / Allowable Values, Photo Required? and Conditionality.

Field Name & Instructions: field

This column defines the data element and the instructions/requirements for the individual collecting the data. It is designed to clarify each field to ensure that data collectors understand what is expected.

Formatted Example / Allowable Values field

Many more choices are listed for the infamous short lists UAD has now. Check it out.

Click here to read the pdf Checkout PDC vs. current very outdated 1004

My comments: Another nail in the coffin for GSE full appraisals. Some appraisers may want to become data collectors or do desktops. Nothing wrong with that. My first appraisal job was updating data records for an assessor’s office, converting to computerized valuation in the mid-1970s. I learned a lot. Some AMCs may use appraisers for data collection at a reasonable fee instead of Uber drivers with 3 weeks of training. They can tell their clients that their data collectors are qualified, as compared with their competitors.


Appraisal Business Tips from Ann O’Rourke

Why is the residential lender business so slow now, as compared with 2008?

The main reasons are very few foreclosures now and that AMCs dominate. There are very few direct lender appraisals now. There were a lot of foreclosure appraisals starting in 2008. Over the years, I have been through many downturns, and foreclosure appraisals helped me greatly. Also, in 2008 there were some direct lender opportunities as AMCs had not taken over completely. Now, AMCs dominate.

The worst time was in the early 1980s when interest rates were up to 18%. Most appraisers were staff appraisers at lenders and got laid off. I purchased my duplex in 1985 I. When rates dropped in 1986, refi mania started, and I made as much money as I wanted as there were few appraisers left. Getting approved was easy. The number of appraisers is definitely dropping now. When rates go down, AMC business will be good for those who are available.

Thanks to Doug Smith, SRA in Montana for this great tip!


Why is it so hard for appraisers to try to do marketing to get more work, both lender and non-lender?

Getting on AMC lists does not require any marketing, such as business from almost any other type of client. If you started appraising before AMCs took over, such as mortgage brokers, you had to do some marketing.

I understand completely. I don’t like marketing either. I would love to have all my clients email me the appraisal order. They pay me, and I email the appraisal to them. No hassles.

I have lots of marketing ideas in my monthly newsletter, of course. A recent one on thinking positive can help, of course. Successful sales persons are very positive.

See the Google Business Profile info below.

Note: I get a lot of short ideas for today’s slow market and will include them in these newsletters. This is the first one.Click here for the 4 ways, plus information on why I take ads, etc.


How to get a FREE Google Business Profile.

An excellent way to get more appraisal business!

Put your appraisal business near the top of Google searches by signing up for a Google Business Profile. You don’t need a website.

This is the best, and easiest, way to market your appraisal business without any time or money.

Google Business Profile is a free tool that allows small business owners to promote their business information on Google.

I have been using it for many years. My website link comes up when people Google appraiser in Alameda, but my Google profile is more visible and in a better location on the page.

In the monthly newsletter. Many practical tips on how to set it up.

To read more about this topic, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

If this article helped you set up Google Business Profile, it is worth the subscription price!


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If you have any comments or info on any topics, please hit the reply button!! I’m always looking for something new ;>


A debt ceiling default would send the U.S. housing market back into a deep freeze

Excerpts: A debt default is very unlikely, but new scenario projections from Zillow show sales would decrease sharply as mortgage costs balloon.

  • Home sales volume would likely decline sharply, with projected deficits of up to 23% fewer sales in the hardest hit month in a severe debt default scenario, than otherwise expected
  • Home values could be 5% lower than in our baseline, no-default forecast by the end of 2024 in the unlikely event of a debt default
  • Much uncertainty surrounds these estimates, but there’s little doubt that a default would be a major negative shock to housing market activity

To read more, click here

My comment: I’m trying not to think (much) about a default, of course :


Uniform Appraisal Dataset Resources from Freddie Mac

There are tabs for Business Resources, Technical Resources, and Announcements with links on the side of each page. The first Business page includes a link for the forms.

Good video UAD Redesign the Movie (from 2021 but still relevant)

I have written about this twice before in this newsletter. This version is comprehensive and easy to use.

I have yet to write about it in my monthly newsletter as most information is very technical. Only a little of it is relevant to the practicing appraiser. I hope someone provides only what is essential to appraisers: Fannie or Freddie.

To read more, click here


Non-Lending Appraisal Assignments: Interview with Joshua Walitt

by Kendra Budd, Editor, Working RE

Excerpt: Q: Is there anything appraisers should know about non-lender work before starting?

Walitt: You need to know your craft. Some people think they can just start completing divorce, estate, or tax appraisals. The reality is you don’t know what you don’t know, especially if you’ve never done non-lending appraisals. It is just logical and professional to know the needs of a job that you’re working on. You need to educate yourself.

We have to understand what the problem is we’re solving. One example is that mortgage appraisal work allows an appraiser to say: “I’m appraising it as repaired,” which is acceptable in some mortgage assignments. We have to understand whether or not that type of presumption or consideration is appropriate for other assignment types.

We can’t just turn a report over to a client and say: “Here it is ‘as if’ this damage is repaired.” They need to know how the damage affects the value—that’s how they ordered the appraisal. They want you to appraise it with all the damage because that’s the nature of the assignment. So, we need to make sure we’re not applying our experience from the mortgage side if it doesn’t really translate.

I think understanding our minimum standards, especially in reporting is crucial because we are using those different forms. We’re no longer just obeying a singular form.

To read more, click here

My comment: Worth reading. Some good tips and analysis.


HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, click here.Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. Some appraisers are very busy, and others have little work. Varies widely around the country.


Mortgage applications decreased 5.7 percent from one week earlier

WASHINGTON, D.C. (May 17, 2023) — Mortgage applications decreased 5.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 12, 2023.

The Market Composite Index, a measure of mortgage loan application volume, decreased 5.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6 percent compared with the previous week. The Refinance Index decreased 8 percent from the previous week and was 43 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 4.8 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 26 percent lower than the same week one year ago.

“Mortgage rates increased last week even as Treasury yields were essentially flat, with the spread between the two rates widening to 310 basis points. Mortgage application activity slowed, as most mortgage rates in the survey increased, with the 30-year fixed rate jumping nine basis points to its highest level in two months at 6.57 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase applications decreased 5 percent to its slowest pace in a month, as buyers remain wary of this rate volatility, but also as for-sale inventory in many parts of the country remains scarce.

Added Kan, “Refinance applications accounted for 27 percent of all applications and dropped almost 8 percent last week. Most borrowers have lower rates on their mortgages, and those who are in the market are extremely rate sensitive.”

The refinance share of mortgage activity decreased to 27.4 percent of total applications from 28.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.5 percent of total applications.

The FHA share of total applications decreased to 12.0 percent from 12.1 percent the week prior. The VA share of total applications decreased to 12.2 percent from 12.9 percent the week prior. The USDA share of total applications remained unchanged at 0.4 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.57 percent from 6.48 percent, with points remaining at 0.61 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) increased to 6.46 percent from 6.33 percent, with points decreasing to 0.38 from 0.51 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.39 percent from 6.41 percent, with points decreasing to 0.97 from 1.01 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.96 percent from 5.91 percent, with points increasing to 0.68 from 0.58 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.71 percent from 5.35 percent, with points increasing to 1.1 from 0.79 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, and thrifts. Base period and value for all indexes is March 16, 1990=100.


Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone 510-865-8041

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