Newz: 12 Days of Appraiser Christmas,
Q4 2025 Fannie Mae Appraiser Update –AMC Risk, UAD 3.6
December 19, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: A Family Feud and Intended Use
- Q4 2025 Fannie Mae Appraiser Update – AMC risk, UAD 3.6
- 12 Days of Appraiser Christmas
- Santa’s House is Back on Zillow with a Bold New Holiday Look
- Highest and Best—and the Highest Value By Richard Hagar
- AQB Proposed Changes in New Appraiser Requirements
- MBA: Mortgage applications decreased 3.8 percent from one week earlier
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Q4 2025 Fannie Mae Appraiser Update
As the year wraps up, we’re focused on what matters most to your success: clarity, consistency, and confidence in every appraisal. This edition gives you practical insights to stay ahead:
- Several deep-dive articles on Uniform Appraisal Dataset (UAD) 3.6, focused on condition/quality ratings, the inspection component of Scope of Work, disaster mitigation, energy efficiency, and training and resources;
- Why time adjustments matter—and how to apply them effectively; and
- Our approach to managing Appraiser Management Company (AMC) risk for stronger compliance and reliability. Excerpts: In Jul. 2025, Fannie Mae began sending letters to AMCs detailing appraisal quality issues identified through Fannie Mae loan quality reviews completed in 2024. Each letter contains a comprehensive list of the issues identified for appraisals associated with that AMC.
To read more, Click Here
My comments: Worth reading. First time I have ever seen comments on AMCs. Good to see that GSEs are looking at AMCs.
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12 Days of Appraiser Christmas
NOTE on video: Click on image and it opens in Youtube.
Very funny!! 3.5 minute video
Sample appraisal requests:
On the fourth day of Christmas my best client sent to me falling
Shacks, three field reviews, two double wides, and a drive by single family.
On the tenth day of Christmas, my best client sent to me 10 tax appeals and eight Mega Mansions.
Singer in this video is comedian David Cassel as the Ukulele Bandito http://www.theukulelebandito.com / (he is not a Portland appraiser, but he is funny)
Many thanks to Gary F. Kristensen, SRA, ASA, AGA at A Quality Appraisals in Portland, Oregon.
My comment: I love this FUN video ;>
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Every December, Santa Claus opens the doors to his cozy North Pole cabin on Zillow so that families everywhere can share in a little holiday magic.
Santa’s House is Back on Zillow with a bold new holiday look
JUST FOR FUN. TAKE A BREAK AND CHECK IT OUT!
For Kids and Adults
Santa’s House is now worth $1,207,345 up more than 0.1% from last Christmas.
Every December Santa Claus opens the doors to his cozy North Pole cabin on Zillow. This year he has gone all our on decorating his home, unveiling five delightful new looks for his home.
To read more, Click Here
Santa’s House is back on Zillow with bold new holiday looks
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HAPPY HOLIDAYS!
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mY |
My comments: I am going to our annual family get together on Christmas. I want to see my first 4 month old grandneice, Lily! Have a good time whatever you are doing – having friends over, a quiet day to watch some streaming movies you always wanted to see, etc. Anything except working on Christmas day… My husband was Jewish, but he always went to our family Christmas events. Of course he mentioned that Hanukkah lasts for 8 days with sometimes gifts on every day. When his children were young they did Christmas and Hanukkah. They loved it.
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December, 2025 issue emailed on
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Highest and Best—and the Highest Value
by Richard Hagar, SRA
Excerpts: Do you want to make everybody happy in a real estate purchase and finance transaction? If so, then the appraisal’s value conclusion needs to come in at the highest value possible. Sellers are happy because they receive money. Lenders and mortgage brokers are happy because they have a large loan amount, and agents are happy because they receive a lofty commission based on the high price.
That being said, an appraiser’s job isn’t to value a property at its purchase price. Our job is to provide an accurate description of the market and subject property together with a market value conclusion properly supported by market data.
When I started appraising, I didn’t always pay close attention to the Highest and Best Use Analysis; why would I? The site was zoned single-family residential (SFR), the subject was an SFR, so check the box on the form, move on, and where’s my check? Unfortunately, back then I didn’t know what I didn’t know, working through the process of becoming an SRA with the Appraisal Institute (AI), I found out that I may have been doing things incorrectly—oh the shock and horror, but it does happen.
In going through AI classes, I learned that the Highest and Best Use Analysis is the basis for properly determining the market value of a property. Without the analysis, the appraisal’s stated value conclusion is often an incorrect guess. The class taught me that the analysis helps examine the actions of the market, determine land value, depreciation & condition adjustments, and the contributory value of the improvements built on the site, all based on the actions of most buyers and sellers.
The Highest Value
Unfortunately, there are lenders out there that don’t want a proper analysis or the highest value, they just want an appraiser who will check the box and give them the value they desire. They also look at appraisers as disposable pawns in the lending game. They find the cheapest, the easiest to push around, and if something goes wrong, they duck and let the appraiser take the hit.
Producing the highest value usually requires knowing the best use for the land and determining which structure would increase its value the most. There are many clients out there willing to pay lucrative fees for appraisals with a proper analysis; besides, it’s something competent appraisers do every single day.
My suggestion: take several classes on Highest and Best Use.
To read more, Click Here
My comments: Comprehensive. Read this if you do residential appraisals. Written by an expert, Richard Hagar. I started appraising at an assessor’s office in 1975. The first question to be answered on every appraisal was the Highest and Best Use. When I started doing lender residential appraisals in 1986 I was surprised that many appraisers did not consider HBU.
I also learned to assume that many/most/all people are “looking for a number”, both non-lenders and lenders. If my value is lower than “the number” I put in additional support for my value.
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AQB Proposed Changes in New Appraiser Requirements
AQB Releases Exposure Draft Proposing Significant Criteria Changes
Excerpts: The Appraiser Qualifications Board has released an exposure draft of proposed changes to the Real Property Appraiser Qualification Criteria, accompanied by two concept papers.
This draft reflects over two years of input from across the appraisal profession. The AQB has drawn from concept papers, comment letters, stakeholder conversations, and occupational analysis surveys to examine every aspect of the Criteria.
This exposure draft marks the beginning of the public phase of this review, and your feedback is essential. Click the link below to view the exposure draft and the two accompanying concept papers and to submit a comment. The public comment deadline is March 3rd.
Excerpts:
At a high level, this Exposure Draft proposes to:
• Eliminate all college-course and college-degree requirements for the Certified Residential and Certified General classifications, replacing them with enhanced qualifying-education expectations and a more detailed Examination Content Outline.
• Increase qualifying education requirements for all credentials, except for the Trainee Appraiser, to strengthen analytical skills.
• Remove elective coursework from the Required Core Curriculum to reduce administrative burdens, ensure uniformity, and focus on essential minimum competencies.
• Revise experience requirements to allow Licensed and Certified credential experience to be earned before, during, or after completing qualifying education and the national examination (with Trainee Appraisers continuing to be allowed to earn experience only after completing their required qualifying education).
• Refine definitions of Practicum and supervision, distinguishing Practicum from PAREA and clarifying supervisory authority and limits.
• Affirm that Trainee Appraisers are not required to complete continuing education while holding the Trainee Appraiser classification.
To view the Exposure Draft, Click Here
Scroll down to “Available for Comment: Appraisal Qualifications Board ” for the current Exposure drafts
Join the AQB on January 22nd at 1pm ET for a webinar on the exposure draft and concept papers. To Register, Click Here.
My comments: The most controversial change for many appraisers in the new appraiser requirements is probably the first one: “Eliminate all college-course and college-degree requirements for the Certified Residential and Certified General classifications” I attended an AQB meeting in San Francisco many years ago. Almost all the appraisers did not want to remove the college requirements. I was one of the few that said it was okay for residential appraisers.
On the plus side, the AQB did extensive research and analysis before deciding what to do. I listened to a summary of what they did during a recent zoom CE class. I was very impressed with the extent of work done before deciding on what to do. They used consultants also.
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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 www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.
My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2026.
Mortgage applications decreased 3.8 percent from one week earlier
WASHINGTON, D.C. (December 17, 2025) — Mortgage applications decreased 3.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 12, 2025.
The Market Composite Index, a measure of mortgage loan application volume, decreased 3.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5 percent compared with the previous week. The Refinance Index decreased 4 percent from the previous week and was 86 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 13 percent higher than the same week one year ago.
“Mortgage rates inched up last week following the FOMC meeting, as investors interpreted the comments to signal that we are near the end of this rate cutting cycle. As a result, mortgage applications declined slightly,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Purchase application volume typically drops off quickly at the end of the year, and this shifts the mix of the business, with the refinance share reaching 59 percent last week, the highest level since September. However, refinance activity has remained mostly the same for the past month as rates continue to hold at around the same narrow range.”
The refinance share of mortgage activity increased to 59.0 percent of total applications from 58.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.2 percent of total applications.
The FHA share of total applications decreased to 19.5 percent from 20.2 percent the week prior. The VA share of total applications increased to 16.6 percent from 16.4 percent the week prior. The USDA share of total applications increased to 0.4 percent from 0.3 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.38 percent from 6.33 percent, with points increasing to 0.62 from 0.60 (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 $806,500) decreased to 6.44 percent from 6.46 percent, with points increasing to 0.41 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.12 percent from 6.08 percent, with points increasing to 0.82 from 0.72 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.72 percent from 5.71 percent, with points increasing to 0.74 from 0.64 (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 5.63 percent from 5.51 percent, with points decreasing to 0.35 from 0.78 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
Please Note:
MBA Offices will be closed beginning on Thursday, December 25, 2025 and will reopen on Friday, January 2, 2026. Due to the office closing and holidays, the results for weeks ending December 26, 2025 and January 2, 2026 will both be released on Wednesday, January 7, 2026.
The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.
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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone: 510-865-8041
Email: ann@appraisaltoday.com
Online: www.appraisaltoday.com
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