Newz: 24 Hour Appraisals, Bias Accusation Collapses, Easements and Appraiser Liability
May 15, 2026
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: Easements and Appraiser Liability
- 24-Hour Appraisals: The Future or a Gimmick? By Shawn Telford , Chief Appraiser and Valuation Officer at Cotality
- $28 Million ‘Pavilion’ House in Los Angeles Boasts ‘Once-in-a-Generation’ Design—and a Sunken Conversation Pit
- Freddie/Fannie UAD and Forms Redesign: Enhanced Timeline and Updated FAQs
- MY AD: Appraisal forms software in September, 1993 – a glance at the past
- AQB Releases White Paper on Experience Requirements
- Bias Accusation Collapses as HUD Clears the Appraiser by Desiree Mehbod
- MBA: Mortgage applications increased 1.7 percent from one week earlier
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24-Hour Appraisals: The Future or a Gimmick?
By Shawn Telford , Chief Appraiser and Valuation Officer at Cotality,
Rethinking Quality and Risk in Modern Valuations: Why Faster Can be Risky
Excerpts: side from the opinion of value, speed is often the next loudest talking point in any conversation about appraisals—but it’s also one of the most misleading. While accelerated appraisal procurement models promise faster turn times, they do little to address the concerns that matter most to lenders: inaccurate valuations, which lead to appraisal defects that create buyback exposure and margin pressures for lenders, ultimately contributing to delays and additional costs.
This isn’t to say that the prospect of 24-hour appraisals is not appealing: after all, who doesn’t like faster? But is it a game-changer or merely a gimmick?
Today, lenders are facing greater scrutiny from the GSEs and investors over loan quality, in general, and collateral valuations in particular. Recently, Fannie Mae reported that collateral defects – like property damage, appraisal condition & quality rating inflation, and inappropriate comparable sale selection—are now accounting for nearly half of discretionary loan review defects. Solving for the Right Problems
Pressuring appraisers to work faster is hardly going to address these issues.
The Economic Impact of Quality
Getting an appraisal quickly can be a plus. But if the valuation requires extensive rework, it can create friction and delays and add operational costs to the underwriting process. One of the biggest slowdowns in the appraisal process is the back-and-forth between the appraiser and an AMC’s lender over administrative “corrections” that often don’t affect the opinion of value. In fact, recent Cotality data shows that nearly half of all appraisals are returned for some type of correction, and the vast majority of those returned do not have their value changed when resubmitted.
To read more, Click Here
My comments: very good analysis with many excellent comments. Very knowledgeable author. Worth reading.
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$28 Million ‘Pavilion’ House in Los Angeles Boasts ‘Once-in-a-Generation’ Design—and a Sunken Conversation Pit
Excerpts: 7 bedrooms, 8.5+ baths, 10,883 sq.ft., 1.07 acre lot, built in 1938
The recently-completed estate at 12309 Viewcrest Road, which is listed for $28 million, is being referred to as the “pavilion” mansion, thanks to its uniquely-designed layout that is made up of “a series of pavilions,” each of which flows effortlessly into the next.
Located in the heart of Studio City, the striking contemporary residence was conceived by Koffka/Phakos Design to blend dramatic scale with organic finishes. The result is a sprawling compound defined by hemlock-clad vaulted ceilings, imported stone surfaces, and designer lighting.
Offering close to 10,000 square feet of space across those three structures, the property features seven bedrooms and 11 bathrooms, as well as several expansive communal spaces, including a living room with a unique sunken conversation pit that adds a retro touch to the otherwise-modern design.
To read the listing, Click Here
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Freddie/Fannie UAD and Forms Redesign: Enhanced Timeline and Updated FAQs
The Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign team has republished the existing UAD timeline and UAD 3.6 FAQs to remove outdated information and provide additional clarity as the industry moves toward the November 2, 2026 UAD 3.6 mandate.
Republished Documents
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UAD timeline – Prior dates and outdated information have been removed. Information has been added about upcoming Warning and Fatal UAD/Submission Summary Report (SSR) feedback messages based on the Uniform Collateral Data Portal® (UCDP®) submission date and the need to carefully manage pipelines as the mandate approaches.
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UAD 3.6 FAQs – More detail is offered about the feedback messages mentioned above and more clarity is provided around how appraisers can handle adjustments for unit discrepancies in the Sales Comparison Approach.
To read more, Click Here
My comments: The revised appraiser FAQs for UAD 3.6 are worth reading.
The November 2, 2026 mandate has not changed.
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Appraisal forms software in September, 1993 – a glance at the past
In the May issue of Appraisal Today
In 1993, there were 13 companies:
Appraisers Choice/Richard Heyn, Appraisers Edge, Day One, Dynamic
Computing, Formfill, Homeputer, MCS, Microform, Residential Appraiser
(SFREP), Softbyte, a la mode, United Systems, and WCA.
Clickforms/Bradford started with Mac forms software in 1986 and later
switched to Windows, but was not included in my 1993 review.
Per one software observer in 1993, more forms software from other
companies was available when I started my business in 1986, but I don’t
have a list of them.
In my 1993 review I found that none of the programs were poor or inferior.
None were significantly above the typical. I had expected a wider range.
A few vendors had copy/use protection. ACI had a hardware device. Some
had customer name encryption. Others had no restrictions.
Prices were by the number of users and forms. URAR form only varied
from $199 to $595. Only one user with all forms varied from $395 to $3,995.
Most were under $1,000. ACI was the most expensive. A la mode was $395.
Some had annual support costs, from $250 to $300, which typically included
upgrades.
Today, the main companies are ACI, SFREP, a la mode, and
Bradford/Clickforms. Homeputer is still in business today. I started with
Dynamic Computing, but they were too slow to get a Windows version, so I
switched to Bradford.
Quite different than UAD 3.6 appraisal software!!
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AQB Releases White Paper on Experience Requirements
As part of its Criteria Reassessment Project, the Appraiser Qualifications Board has published a white paper that brings together findings from the published research literature on professional licensing and assessment, the federal statutory and regulatory record applicable to appraiser licensing in the United States, and the publicly available regulatory frameworks of comparable licensed professions.
This rigorous academic review reaffirms a principle that has long defined the appraiser qualification framework: education, examination, and hands-on practice together produce a practitioner the public can trust.
This white paper is being released in preparation for the upcoming exposure draft. The AQB looks forward to sharing that draft for public review and comment soon.
To read more, Click Here (PDF)
My comments: I have been impressed with the AQB’s use of knowledgeable and experienced outside professionals in how to make these changes to licensing requirements.
Bias Accusation Collapses as HUD Clears the Appraiser
by Desiree Mehbod
Excerpts: HUD just confirmed what the appraisal showed from day one: the accusation never had a pulse.
If you read the original article about Steve Orlowski, the Illinois appraiser dragged through a multi year circus over a baseless bias allegation, you probably walked away thinking that surely this nightmare had to end at some point. The state had already taken its shot, the facts were already sitting in plain view, and nothing in the report supported the accusation. But as every appraiser knows, once a complaint enters the system, it tends to move forward on momentum alone, even when the foundation underneath it is paper thin.
Now we finally have the federal conclusion, and it is exactly what anyone familiar with appraisal work expected from the beginning. HUD has officially dismissed the complaint and issued a Determination that there was no reasonable cause to believe any discriminatory housing practice occurred. Five years of investigation, and HUD ended up right where most appraisers would have landed after reading the first page of the report.
And here is the part that will make many appraisers stop and reread the details: the appraisal actually came in higher than the borrower’s own estimate. The borrower said the home was worth $150,000. Steve appraised it at $164,000. The lender increased the loan amount to $123,000 because the value supported it. The loan closed. The borrowers walked away with more money than they expected. This is not the usual “the appraiser tanked my deal” storyline that typically fuels discrimination claims.
So why did they still file one?
To read more, Click Here
My comments: I am renewing my appraisal license next month. Another useless 7 hour Bias class required. Total waste of time. At least the required USPAP class might have something new, or at least reminders of existing issues.
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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 2027.
Mortgage applications increased 1.7 percent from one week earlier
WASHINGTON, D.C. (May 13, 2026) — Mortgage applications increased 1.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 8, 2026.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index decreased 1 percent from the previous week and was 28 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index increased 4 percent compared with the previous week and was 7 percent higher than the same week one year ago.
“Mortgage rates were generally higher last week, with the 30-year fixed rate at 6.46 percent, its highest level in five weeks,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase applications were higher over the week and 7 percent ahead of last year’s pace, with all loan types showing increases in purchase activity, as potential homebuyers shrugged off the current economic and mortgage rate uncertainties and returned to the market. Refinance applications declined slightly, led by conventional and VA refinancings, and accounted for a little more than 40 percent of applications last week, the lowest share since July 2025.”
The refinance share of mortgage activity decreased to 40.8 percent of total applications from 42.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8.8 percent of total applications.
The FHA share of total applications increased to 17.9 percent from 17.7 percent the week prior. The VA share of total applications remained unchanged at 14.9 percent from the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.46 percent from 6.45 percent, with points decreasing to 0.63 from 0.66 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 6.48 percent from 6.47 percent, with points increasing to 0.55 from 0.47 (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 increased to 6.16 percent from 6.12 percent, with points increasing to 0.75 from 0.74 (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 remained unchanged at 5.83 percent, with points decreasing to 0.68 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.70 percent from 5.60 percent, with points increasing to 0.86 from 0.83 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
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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