Defending Adjustments for Appraisers

By on September 4, 2026   /   adjustments, AI, AMCs, appraisal business, GSEs, UAD 3.6   /   Leave a comment
Tags: , , , , , ,

Newz:  GSEs Request Feedback on UAD 3.6, Defending Adjustments

September 4 , 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Too Late for a Reconsideration of Value
  • How to Defend Adjustments in Appraisal Reports
  • $112 Million Laguna Beach Mansion With a Private Library and a Rotating Bed in Primary Suite Could Become Priciest Home Ever Sold in Orange County
  • GSEs Request Appraiser Feedback on UAD 3.6
  • MY AD: How AI Can Help Residential Appraisers and Why Appraisers Will Always be Needed By By David Galatto
  • First the Borrower Fee. Now the Appraiser Compensation in Court By Kenneth J. Mullinix
  • The part of the process appraisers never see, and the reason your file keeps coming back
  • UAD 3.6 UPDATE – Inspection Checklist, New Survey: UAD 3.6 mandate is Nov. 2nd. Are you ready for it?,
  • MBA STATS: Mortgage applications increased 0.8 percent from one week earlier

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How to Defend Adjustments in Appraisal Reports

When someone questions an adjustment, many appraisers respond, “It’s based on market data” or “my experience in the market.” These statements might be true, but they don’t support the adjustment. They just state where it came from.

Appraisal reports are similar to scientific papers. A scientist can’t write “Based on my experiments, the hypothesis is correct” and expect peer review to accept it. Scientists need to share their methodology, summarize their analysis, and support their conclusions.

The same applies to appraisal adjustments. Saying you used market data is like saying you conducted an experiment. It’s just the starting point. Your report needs to summarize how you analyzed the data and how it supports that specific adjustment.

Without this documentation, you haven’t provided credible analysis. You’ve stated an unsupported opinion, regardless of your experience.

You need a clear path from market evidence to the number on your grid. Defending appraisal adjustments isn’t one perfect technique. It’s about using multiple, credible methods, explaining your logic, and sequencing your work so it aligns with how the market behaves and with USPAP.

Below is a practical, step-by-step approach you can put to work right away.

Start with the Right Sequence

Before you calculate any adjustment, get the order right. In practice, you should follow this sequence:

  • Apply transactional adjustments:
  • Real property rights conveyed
  • Financing terms
  • Conditions of sale
  • Expenditures made after purchase
  • Market conditions (time)
  • Apply property adjustments:
  • Location
  • Physical characteristics (e.g., finished square footage, bathrooms, garages, condition, quality)

Transactional adjustments affect the overall transaction price, and each adjustment creates a new base for the next one. They answer the question, “What would this comparable have sold for under typical terms on my effective date?”

These adjustments normalize the sales by removing distortions from unusual financing, non-market conditions, or time differences.

Equalize Market Conditions Before You Compare

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Appraiser Survey: Which Approach Is Most Effective for Explaining Adjustments?

The top two appraiser survey answers, by far, were “Backing adjustments with strong market data and analysis,” and “Writing detailed, transparent commentary within the report.” These results help reinforce the idea that defensible adjustments are all about good development and clear reporting. To read more, Click Here

My comments: Worth reading. Excellent article covering the important topics. The practical sections:“ Mini Example” and “Show Reviewers” are very good.

This article is updated from a 10/25 newsletter. I have never been questioned about an appraisal adjustment. Quit doing residential Lender appraisals in 2025.Read the full article to see a graph of Which Approaches are Effective” for more details.

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$112 Million Laguna Beach Mansion With a Private Library and a Rotating Bed in Primary Suite Could Become Priciest Home Ever Sold in Orange County

Excerpts: 8 bedrooms, 12.5 baths, 14,443 sq.ft., 1.02 acres, Built in 1994Highlights found throughout the landmark compound include more than an acre of direct beachfront access, a Fred Briggs-designed primary residence, more than 2,000 feet of oceanfront terraces, and resort-inspired amenities, including a pool and spa.

Other lavish details include a gourmet kitchen with professional-grade appliances, a sculptural spiral staircase with glass floor leading to a library appearing to float above the Pacific, and a primary retreat “unlike any other” with a rotating bed tucked away “beneath an operable ceiling that opens to the stars.”

The 1.02-acre property also has a private cinema, a wine cellar, a wellness retreat with fitness studio, sauna, and rock waterfall, a two-bedroom guest house, an eight-car garage with catering kitchen, a private amphitheater, and an ocean-facing championship tennis court.

To read the listing with 60 photos, Click Here

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GSEs Request Appraiser Feedback on UAD 3.6

Are you ready for the transition to the Uniform Appraisal Dataset (UAD) 3.6 and the redesigned Uniform Residential Appraisal Report? Fannie Mae and Freddie Mac (the GSEs) are surveying appraisers to better understand current readiness across the industry.

Please complete the survey by Friday, Sept. 11, 2026.

To Take the Survey, Click Here

Share Your Feedback

Thank you for your time and partnership.

The GSEs

Doug Smith Comments: The questions are very revealing. I think this is a clear indication they will announce a moratorium and November 2 is no longer the deadline! My question is did they send a version to the lenders.

My comments: See the recent Survey results in the UAD UPDATE at the end of this newsletter. Very interesting results!

I took the GSE survey. Does not take very long. They got the important questions of what appraisers think. I hope we get the results.In my last weekly newsletter, the subject line included No Body is Ready for UAD 3.6, a report on the recent National Conference. Well written.

To read the No Body Is Ready article, Click Here

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You can also hit the reply button. Be sure to include a comment requesting it. Or, call 510-865-8041

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First the Borrower Fee. Now the Appraiser Compensation in Court

By Kenneth J. Mullinix, a California Certified Residential Appraiser

Most appraisal disputes examine only one part of the transaction. Two pending lawsuits involving Class Valuation, LLC approach the appraisal process from opposite directions. One asks whether staff appraisers were properly compensated for overtime. The other asks whether a homeowner was properly informed about how an appraisal-related fee was divided.

The cases are legally separate. They involve different plaintiffs, statutes, and courts, and neither has produced a finding that Class Valuation violated the law. Viewed together, however, they raise a question the appraisal profession has asked for years: When a borrower pays one appraisal-related fee, how much reaches the appraiser, how is the appraiser compensated, and how clearly is the remaining charge explained?

Accessing Online Public Court Records

For La Rica Golar, those questions moved beyond professional frustration and into federal court. Her lawsuit under the Fair Labor Standards Act seeks relief for herself and other similarly situated Class Valuation staff appraisers. La Rica Golar’s Lawsuit Golar v. Class Valuation, LLC was filed March 12, 2026, in the U.S. District Court for the Northern District of Georgia.

The complaint seeks to proceed as an FLSA collective action and alleges that Class paid staff appraisers under salary and production or piece-rate arrangements, exercised substantial control over their schedules and assignments, maintained records relating to their work, and failed to pay the overtime compensation allegedly required for hours exceeding 40 in a workweek.

To read more, Click Here

My comments: Many details of other issues included in article.

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The part of the process appraisers never see, and the reason your file keeps coming back (Review!)

By Joe Pravettone, AMC Chief Appraiser

Excerpts: To upload the report, hit send, and head to the next inspection. As far as you’re concerned, the job’s finished. Truth is, it’s only finished on your end.

From there, your report starts a journey most appraisers never get to see. It lands in an AMC review queue, gets picked apart by automated QC looking for anything that doesn’t match MLS or public records, gets compared against a title report you probably never saw, and eventually lands on an underwriter’s desk, where every assumption has to be documented and defended.

That’s four different checkpoints, and every one of them has the power to kick the file back.

If you’ve never sat on the other side of that process, you’re working with a blind spot. I’ve been lucky, or unlucky, depending on how you look at it. I’ve worked those seats. I know what reviewers are looking for, what underwriters worry about, and why perfectly good appraisals sometimes turn into three days of revision requests, frustrated loan officers, and unnecessary headaches for everyone involved.

Revisions versus credibility problems

Here is a distinction that matters more than the appraisal community likes to admit. Some things that come back are clerical. It’s a missing photo, a soft explanation, an exhibit that did not upload. These things are annoying, but fast to fix, often forgotten by Friday.

Other things that come back are credibility problems, and those follow you.

Condition ratings are probably the biggest one. vice on how to avoid common pitfalls so your appraisal can sail through the process and you can move on to the next job.

To read more, Click Here

My comments: Worth reading. Advice from an appraiser who has been on both sides.

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UAD 3.6 UPDATE – Inspection Checklist, Appraiser Survey – Are you ready for Nov. 2?

This is by far the best checklist I have seen so far. It is so good, some may be able to use this instead of mobile.

For appraisers concerned that UAD 3.6 requires taking a tablet into the field, this excellent UAD 3.6 Property Inspection Field Checklist — Beginner Edition demonstrates otherwise. It organizes the required observations into a practical paper-based workflow—Always, If Applicable, and Verify Later—that can be completed in the field and transferred to desktop software afterward.

The author of the Checklist is Matt Barczewski, a Certified Residential Real Property Appraiser based in Milford, DelawareI joined my father’s practice as a trainee in 2016, continuing a family appraisal tradition that includes my grandfather, a Realtor and MAI, and my father, who has more than 40 years of appraisal experience. He is also a Realtor and recently completed his term as head of the Delaware appraisal council.To download the PDF Checklist: Click Here

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Appraisal Buzz Survey UAD 3.6 mandate is Nov. 2nd. Are you ready for it?

Editor’s Note: only a pie chart image with no percentages indicated in the original version.

By Doug Smith:

I was able to calculate the approximate percentages from the pie chart in the Appraisal Buzz poll:1.6% — Yes, I’m already doing them.7.0% — Yes, I just need my first order.24.7% — No, but I will be when the mandate comes.66.7% — No, I’m banking on them moving it to next year anyway.The percentages are calculated from the proportions of the published pie chart, so they are estimates rather than numbers supplied by Appraisal Buzz.The interesting takeaway is that only about 8.6% appear ready now, while 91.4% say they are not yet ready. Most striking, about two-thirds are banking on the November 2 mandate being moved.

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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 0.8 percent from one week earlier

WASHINGTON, D.C. (September 2, 2026) — Mortgage applications increased 0.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 28, 2026.

The Market Composite Index, a measure of mortgage loan application volume, increased 0.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week.  The Refinance Index decreased 1 percent from the previous week and was 19 percent lower than the same week one year ago.

The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index decreased 0.3 percent compared with the previous week and was 0.2 percent lower than the same week one year ago.

“Mortgage rates reached their highest levels in four weeks as investors’ concerns about inflation and growing deficits push yields higher across the globe,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Refinance volume dropped in response, but purchase volume increased modestly over the week and was slightly below last year’s level. In many local markets, potential buyers have plenty of homes to choose, and this is likely supporting transaction volume. Another trend we’re monitoring is more borrowers choosing ARMs, with the ARM share back to 8 percent last week, its highest level in 5 weeks.”

The refinance share of mortgage activity decreased to 41.8 percent of total applications from 42.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.0 percent of total applications.

The FHA share of total applications decreased to 15.9 percent from 16.2 percent the week prior. The VA share of total applications increased to 13.6 percent from 12.8 percent 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 6.79 percent from 6.78 percent, with points decreasing to 0.65 from 0.66 (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 $832,750) increased to 6.76 percent from 6.73 percent, with points decreasing to 0.40 from 0.50 (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 6.49 percent from 6.46 percent, with points remaining unchanged at 0.82 (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 6.14 percent from 6.10 percent, with points decreasing to 0.86 from 0.90 (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 decreased to 5.94 percent from 5.98 percent, with points decreasing to 0.66 from 0.88 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased 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

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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Nobody is Ready for UAD 3.6 Today

By on August 28, 2026   /   AMCs, appraisal how to, UAD 3.6   /   Leave a comment
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Newz:  Nobody is Ready for UAD 3.6,

Time to Take Out the AMC Junk

August 28, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Think carefully before signing a Records Affidavit
  • Nobody is Ready for UAD 3.6 by Isaac Peck, Publisher WorkingRE
  • The famed rotating round house at 4 Harkle Road in Novato is for sale for the first time
  • It’s Time to Take Out the Junk: AMC Practices Exposed by Logan Dorman
  • MY AD: How to reduce stress to be more productive in business and a happier life
  • Becoming an Appraiser: Courage to Grow Beyond Training by Timothy Andersen, MAI
  • UAD 3.6 UPDATE – Comp Photos, Any Future for Residential Appraisers?
  • MBA STATS: Mortgage applications decreased 1.0 percent from one week earlier

Nobody is Ready for UAD 3.6

by Isaac Peck, Publisher WorkingRE

I just got back from Valuation Expo, the nation’s largest and most dynamic conference for real estate appraisers and valuation industry stakeholders. More than 800 people made it to Las Vegas this year.

Appraisers, chief appraisers at appraisal management companies (AMCs), lenders, regulators, software developers, service providers, insurance professionals and more convened to talk about the latest technology and explore where the profession is headed.

The mood was elevated and positive—many attendees were genuinely invigorated and excited about the future. And yet, despite all the positivity, another reality was plainly clear from the conversations: Nobody is ready for UAD 3.6.

While many of the leading software providers received initial approval from Fannie Mae and Freddie Mac (the GSEs) in late 2025 and early 2026, word on the ground is that there are still plenty of bugs to work out.

AMC executives privately shared that they have staff simultaneously testing all the GSE-approved appraisal reporting software so they can troubleshoot and support appraisers when they inevitably run into bugs and errors trying to turn in an assignment. Some of those bugs are being run back to the software companies in real time, as appraisers, AMCs, lenders and software providers work together to find a solution.

In other words, while the GSEs tested the main appraisal report software providers on several different types of assignments, there are so many nuances, data fields and report settings that bugs are surfacing rapidly now that appraisers are finally doing live assignments.

In addition to the software challenges, part of the problem is that most lenders haven’t begun ordering UAD 3.6 reports at all.

I spoke with several regional AMCs. Each had completed just two UAD 3.6 assignments—and in each case, one of the two was a test run the AMC had ordered itself.

If one of the largest mortgage lenders in the country has only done six UAD assignments, how many appraisers have actually completed a UAD 3.6 assignment? The answer is very, very few.

An appraisal software executive shared with me privately that he fears appraisers may be (wrongly) blamed if the rollout goes poorly and the market is disrupted. It would be easy to sell a narrative that “appraisers weren’t ready,” or that appraisers can’t handle the new report format. Such a view clearly misses the point. After all, appraisers don’t control the development of the software, nor do they control when UAD 3.6 reports start getting ordered, to Reuter’s point.

Will we see an avalanche of UAD 3.6 orders in September and October, and will the transition happen smoothly by mid-October? It seems unlikely.

Many thanks to Isaac Peck for “in person” realistic reporting on the Most Popular Topic in appraising – Future of UAD 3.6 and GSEs.

To read more, Click Here

My comments: Definitely worth reading the full article!!! I was unable to attend this conference but have attended many webinars and two “boot camps” via zoom since early 2025. Plus I have written about the problems.

This article was no surprise to me. It puts all the pieces together and has quotes from knowledgeable people, plus what appraisers said.

Read more!! →

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Solidfi AMC vs. Appraiser

By on August 21, 2026   /   AMCs, Appraisal Qualifications Board, appraisal regulations, UAD 3.6   /   Leave a comment

Newz: AQB Changing Requirements OK?, Completion Certificates, Solidfi AMC vs. Appraiser

August 21, 2026

What’s in This Newsletter (In Order, Scroll Down)

LIA AD: Completion Certificate Assignment

  • Second AQB Exposure Draft Proposals Could Be Game-Changing, By Bryan Reynolds
  • How the Shotgun Home Went From Affordable Southern Staple to an Endangered Design Gem
  • When Solidifi Tried to Silence Samnick
  • MY AD: Beyond Forms, Toward Wisdom: The Case for a Broader Education in Real Estate Appraisal, By Tim Andersen, MAI
  • Appraisal Software Tools to Consider in 2026
  • My UAD 3.6 Tips of the Week – FHA/VA, Tablets
  • MBA AD STATS: Mortgage applications decreased 0.4 percent from one week earlier

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Second AQB Exposure Draft Proposals Could Be Game-Changing

By Bryan Reynolds

Comments are due by August 30, 2026. To Post Your Comments, Click Here

The AQB is proposing changes to the appraiser qualification requirements that would significantly change some of the barriers to entry. Here are some highlights. Excerpts: n June 22, 2026, the Appraisal Foundation’s Appraiser Qualifications Board (AQB) released their “Second Exposure Draft of Proposed Changes to the Real Property Appraiser Qualification Criteria.” (Read it here.)

That’s a mouthful. Let me translate: The AQB is proposing some big sweeping changes to the minimum requirements for becoming a real property appraiser. I’m not taking a position on these proposals, but there’s no question that several of them could remove or reduce long-standing barriers to entry for aspiring appraisers.

As AQB chair Jerry Yurek explained: “The proposals do not lower the bar the appraiser credential signifies. They do, however, streamline the path to entry into the profession by eliminating requirements that do not contribute to an applicant’s readiness.”What the Exposure Draft Would Change:

1. Eliminate the College Degree Requirement for Certified Residential and Certified General

2. Remove the Minimum Calendar-Time Requirements for Experience

3. Add a Demonstration Appraisal Report Pathway for Licensed Residential

4. Recognize Experience Already Earned When Moving to a Higher Classification

Make Your Voice Heard

The AQB exposure process is the profession’s opportunity to support, oppose, or recommend revisions to the proposals. Comments are due by August 30, 2026. Whether you are an appraiser, trainee, educator, regulator, lender, or user of appraisal services, review the draft carefully and provide specific, constructive feedback to the AQB.

These proposals could be game-changing. The profession should help determine exactly how the game changes.

To read more in the article Click Here

For more information from the AQB, Click Here 

My comments: This article is very positive about the reason for the changes and mostly was what the ASB said. Many thanks to Bryan Reynolds for writing up what is proposed.

No college degree for certified general is not a good idea.

I learned how to write long “papers”, open to ideas about new things in college. Of course business classes are good. I never had business classes until I got my MBA 10 years after I started appraising. I became a much better appraiser. Maybe some business classes could be required. Especially financial.

Commercial appraisers need very good math and financial expertise.

The big problem, exposed after licensing, was the experience requirement. People sent out mass mailings to find a mentor. They had no way to determine if they were ethical, knew how to appraise, and more. Of course, fee appraisers have had no teacher training. I still hear stories about trainees who found out their mentor was teaching them the wrong things.

Before licensing, most trainees started at lenders, who had supervisors to train them. I was trained at an assessor’s office with the same set up.I am a musician and learned to play many instruments over the years. I learned to take lessons when I first started playing. Why? So I did not have to un-learn the wrong way to play better. The same applies to appraiser trainees.

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A FINAL PLEA — TAKE A FEW MINUTES TO COMMENT BY DOUG SMITH

The AQB has extended the comment deadline on its proposed changes to the Real Property Appraiser Qualification Criteria from July 27 to August 30. With appraisers also trying to prepare for the enormous change represented by UAD 3.6, that extra time is welcome.

But August 30 is now only days away.One proposal deserves particular attention: eliminating the college degree requirement for Certified General appraisers.Whatever your position, this is a major change in the qualifications for entry into our profession. The AQB needs to hear from the people who actually practice appraisal.You do not need to write an essay. Even a short comment stating whether you support or oppose eliminating the college degree requirement — and briefly why — puts an appraiser’s voice into the record.Take a few minutes. Make your voice heard.Deadline: August 30, 2026Send your comment by email to: AQBComments@appraisalfoundation.org

Copy the address, paste it into your email, write a few sentences, and hit Send.Many thanks to Doug Smith for his comments!!

Read more!! →

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Basic Requirements For Appraisal Reports (Updated for UAD 3.6)

By on July 31, 2026   /   AMCs, Appraisal fees, GSEs, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: 3 Basic Requirements for UAD 3.6 Appraisal Reports, Good Facebook Page – UAD 3.6 Software

July 31, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Limiting Liability to Third Parties
  • The 3 Basic Requirements for Real Property Appraisal Reports (Updated for UAD 3.6) By Kevin Hecht
  • Bay Area’s wildest house lists at $899K and just hit the market for the first time
  • Am I Being Paranoid, or Is There Another Reason? By Richard Hagar, SRA – GSE data
  • MY AD: Residential appraisal forms from the 1960s to today
  • The Appraisal Fee Lawsuit AMCs Can’t Outrun
  • DATE CORRECTION ON CONFERENCES in last week’s email
  • Excellent Facebook Page for UAD 3.6 Software
  • MBA STATS: Mortgage applications decreased 6.4 percent from one week earlier

 

The 3 Basic Requirements for Real Property Appraisal Reports (Updated for UAD 3.6) By Kevin Hecht, SRA

Excerpts: As a real property appraiser, you rely on appraisal reports to communicate your opinion of value. One of the most important principles in USPAP is also one of the most misunderstood: forms are not reports.

Filling out a form properly and completely does not automatically mean your report is USPAP-compliant. The content of the appraisal report, not its form or format, determines compliance.

That distinction has never mattered more than it does right now.

The static forms appraisers have relied on for decades, including the 1004, 1073, 1025, and 2055, are being retired and replaced by a single, dynamic, data-driven reporting structure.

This shift does not change the three foundational requirements of USPAP Standards Rule 2-1. But it does change how you meet them. Understanding that distinction is critical to your compliance and your credibility in the new reporting environment.

TOPICS

What Are the Three Basic Requirements for an Appraisal Report?

Standards Rule 2-1(a): Clearly, Accurately, and Not Misleading

SR 2-1(a) builds on the ETHICS RULE requirement that your appraisal reports must not be misleading. You satisfy this requirement by making sure you “clearly and accurately set forth the appraisal.”

As the saying goes, you must tell the truth, the whole truth, and nothing but the truth.

Under the legacy form-based system, appraisers added context and explanation through a free-form General Addendum, which provided flexibility when a standard data field did not fully capture the nuances of a particular property or assignment.

Under UAD 3.6, that flexibility is now built directly into the report structure itself through section-specific commentary fields, which keeps all relevant analysis organized and immediately accessible to reviewers.

Standards Rule 2-1(b): Sufficient Information for Intended Users

What changes under UAD 3.6 is where and how you provide that sufficient information

Standards Rule 2-1(c): Disclosing Assumptions, Extraordinary Assumptions, Hypothetical Conditions, and Limiting Conditions

How UAD 3.6 Supports USPAP Compliance

Preparing for UAD 3.6: Practical Steps for Appraisers

To read more, Click Here

My comments: Comprehensive, well written and worth reading.

Read more!! →

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Former Appraiser Goes to Prison

By on July 10, 2026   /   AMCs, bad appraisers, Economic analysis, UAD 3.6   /   Leave a comment
Tags: ,

Newz: Former Appraiser Goes to Prison, Board Says AMC Violated Appraiser Independence

July 10, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Who Said I Agreed To Be An Expert?
  • Former Florida Resident Sentenced to 20 Years in Federal Prison for Appraisal Fraud
  • Whimsical Storybook Cottage Built With Salvaged Wood From Old Boxcars Lists for Just $250K
  • The Board Has Spoken, and AMCs Should Pay Attention
  • MY AD: UAD 3.6 and the “Tablet” Question By Doug Smith, SRA
  • UAD 3.6 and the Future of Residential Appraising By Tony Pistilli
  • The Full Measure: Midyear 2026 Economic Update for Appraisers By Kevin Hecht
  • MBA STATS: Mortgage applications decreased 2.2 percent from one week earlier

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Former Florida Resident Sentenced to 20 Years in Federal Prison for Appraisal Fraud

Excerpts from DOJ Press Release

Tampa, FL – Armando Martinez (51, Plano, TX) has been sentenced by Chief U.S. District Judge Amos Mazzant, III, of the United States District Court for the Eastern District of Texas to 20 years in federal prison for bank fraud. Martinez previously pleaded guilty. U.S. Attorney Gregory W. Kehoe made the announcement.

According to court documents filed with the United States District Court for the Middle District of Florida, Martinez, who had his Florida Appraiser’s license revoked, orchestrated and executed a bank fraud scheme directed at multiple financial institutions by taking over the identity and license number of a legitimate licensed appraiser.

Martinez then purportedly conducted onsite appraisals for dozens of properties in Florida. In reality, Martinez paid others to go to the properties and take pictures for appraisals he completed. He then sent the appraisals to the victim lenders, using his computer after having fled the United States to the Dominican Republic.

Based on the false and fraudulent appraisals, the financial institutions were fraudulently induced to approve and fund mortgage loans and pay Martinez appraisal fees. As a result of Martinez’s appraisal fraud, more than $65 million in mortgages are impaired or defective. These mortgages were either guaranteed by the Federal Housing Administration or purchased and guaranteed by Fannie Mae and Freddie Mac.

Dave Towne Comments: Another ethically twisted former appraiser is going to be experiencing “three hots and a cot” for the next 20 years, assuming the full sentence is served.

It never ceases to amaze me how some very bad people in our profession think they can keep the ‘wool pulled over the eyes’ of financial institutions, and the funders or guarantors of those mortgage loans.

In this case, the former appraiser had his licenses in Florida and Texas REVOKED in 2020. But then stole the identity of another unsuspecting appraiser, fled the US, hired ‘go-fers’ to get Florida subject and comp photos and data, then wrote, signed and submitted fraudulent appraisals after the revocation date.

The other sickening part of this, which is not mentioned, is that the ‘go-fers’ the convicted appraiser hired probably were akin to “gig workers” with limited education or understanding of what they were actually doing to assist the mortgage frauds activity.

To subscribe to Dave Towne’s emails, send an email to dtowne@fidalgo.net requesting to be added to his email list. I have subscribed for many years. He lives in Mt. Vernon, WA

To read the full Press Release, Click Here

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Fannie Appraiser Update Q1 2026

By on March 27, 2026   /   AMCs, appraisal business, bias, Fannie   /   Leave a comment
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Newz: Fannie Appraiser Update Q1, Suspended AMC, Bias

March 27, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Should I consider this an actual claim?
  • Fannie Appraiser Update Q1
  • 126-Year-Old Gentlemen’s Estate That Epitomizes Gilded Age Opulence Lists in the Berkshires for $8 Million
  • Suspended: The AMC That Turned “Review” Into a Value Demand
  • Retirement: To Stay, To Go, or Can’t Decide? That is the Question!
  • AQB Releases Job Analysis Report
  • A Baseless Bias Claim Turns Into a State Appraisal Crusade
  • MBA: Mortgage applications decreased 10.5 percent from one week earlier

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Fannie Appraiser Update Q1

Email Message 3/19/26

Welcome to the first Appraiser Update of 2026. This edition delivers timely information to help you stay competitive and ready for what’s next, including:

Preparing for the fast-approaching Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign mandate on Nov. 2, 2026;

Understanding Appraisal Quality Monitoring letters to appraisers related to time adjustments; and

Embracing expanded eligibility for manufactured housing and accessory dwelling units – available only for UAD 3.6 submissions.

Topics list

  • UAD 3.6 articles
  • Appraisal Software Selection
  • Treatment of Location and View
  • Market Conditions Analysis Letters
  • MH Policy Changes
  • ADU Policy Changes

To read the update, Click Here

My comment: Worth reading, of course. Always a very popular link!

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Scatter Charts for Appraisers

By on March 20, 2026   /   AMCs, real estate market   /   Leave a comment
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Newz: Scatter Charts, Do Not Use List, UAD 3.6 Key Changes and Resources

March 30, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Am I Still on the ‘Do Not Use’ List
  • The Power of Scatter Charts: Bringing Objectivity to Appraisals
  • by Scott Cullen
  • 1780 Tiny Home That Was Built by a British Sea Captain Hits the Market in Georgetown for $1,198,000
  • MY AD: Highest and Best Use of the Cost Approach
  • The housing market so far in 2026 By Ryan Lundquist, March 11, 2026
  • Trump’s Executive Order on Access to Home (including appraisers)
  • MBA Origination Stats: Mortgage applications decreased 10.9 percent from one week earlier

 

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The Power of Scatter Charts: Bringing Objectivity to Appraisals

by Scott Cullen

Excerpts:

“Objectivity is isolating the effect of individual variables on value.”

Once upon a time, in a suburban neighborhood not so far away, an appraiser came across a pure pair, two homes that seemed almost identical. They shared the same neighborhood, lot size and condition. The only difference was size. One house had 2,500 square feet of above grade finished area and the other had 2,300. The first sold for $460,000, the second for $446,000. The difference in price was $14,000. The difference in area was 200 square feet—producing an adjustment of $70 per square foot.

Traditionally, an appraiser might document this relationship as a simple table, noting the difference in sale price and living area. Unfortunately, pure pairs are so rare that they often seem like a fairytale—something every appraiser dreams of finding but seldom does. In the real world, properties rarely align so neatly. Markets shift, concessions appear, and location nuances creep in. Yet there is hope. By learning to use scatter charts, embracing adjusted pairs, and understanding sensitivity analysis, appraisers can move closer to true objectivity in their valuation work.

From Paired Sales to Sensitivity Analysis

The Appraisal of Real Estate, 15th Edition defines paired data and grouped data as forms of sensitivity analysis—a method used to isolate the effect of individual variables on value. Sensitivity analysis is the overarching principle that allows us to quantify how much one variable contributes to price, while holding others constant (Appraisal Institute, 2020, p.371). Scatter charts are among the most powerful tools available to visualize and calculate these relationships.

Why Visualization Matters

Scatter charts do more than calculate—they communicate. They combine mathematical precision with the clarity of visualization. For appraisers, this means turning abstract numbers into evidence that both clients and reviewers can see.

A well-constructed scatter chart illustrates the logic behind the adjustment and lends weight to the appraiser’s conclusions. It reinforces transparency: others can replicate the math, verify the trendline, and confirm that the adjustments are derived from observable market behavior.

As the saying goes, “A picture is worth a thousand words.” In appraisal, it’s also worth credibility. Scatter charts bring statistical discipline to the craft of valuation, grounding professional judgement in data.

To read more, Click Here

My comments: Read more to see scatter chart samples and how they are used.

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How to Appraise Basements

By on February 20, 2026   /   AMCs, appraisal how to, UAD 3.6   /   Leave a comment
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Newz: Appraising Basements, AMCs,

Who is doing UAD 3.6 appraisals?

February 20, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Limiting Liability to Third Parties
  • Basement Appraisals: Understanding Contributory Value (Updated for UAD 3.6)
  • Fascinating ‘Basement Home’ That Rises Just Inches Above the Ground Hits the Market for Less Than $160K
  • The AMCs: Coming Soon to a Lawsuit Near You
  • MY AD: The Cost Approach for Appraisers is not popular, by Tim Andersen, MAI
  • 26% of Appraisers Feel Ready: What UAD 3.6 Demand
  • Mortgage applications increased 2.8 percent from one week earlier
  • Have you received a UAD 3.6 order yet? Survey.
  • MBA: Mortgage applications increased 2.8 percent from one week earlier

Basement Issues and Values

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Basement Appraisals: Understanding Contributory Value (Updated for UAD 3.6)

Excerpts: While homeowners may ask, “Does a finished basement add value to my appraisal?” you know the answer is a bit more complicated. A basement may impact a residential property’s value, and as an appraiser, you’ll need to evaluate its significance.

While determining the contributory value of basements isn’t overly complex, it does pose challenges. To help you out, we’ll outline essential steps and provide tips for evaluating a basement’s contributory value.

Summary

Determining how a basement contributes to a residential property’s value requires an appraiser to identify the basement type, its level of finishing, and any common concerns, like signs of mold or structural issues. Following best practices is key. This includes separating the basement from the above-grade finished area, understanding the intended use of the space, and completing comprehensive market research. By doing so, you can evaluate the basement’s contributory value more accurately

Topics include:

Types of basements (partial list)

Cellars

Partial Basements

Walk-Up Basements

How Is the Basement Finished? Determining Levels

Know the Intended Use and Client Requirements

To read more, Click Here

My comments: The best analysis and advice on basements I have seen. Watch the 7 minute video on Understanding Q/C ratings (UAD 3.6) Where I work the ground does not freeze. In my Island city there is no cemetery as the ground water from San Francico Bay is very high. Basements need pumps to remove salt water. Basement walls are not used to support the home. Sometimes there are above ground basements, basements dug out of the ground, and many other types of basements. In steep hillside areas what is a “basement” can be controversial.

In Alameda, my city, native American burials, primarily from the Ohlone people, are heavily concentrated in former shellmounds (ancient cemeteries) throughout Alameda. Almost were removed many years ago, similar to other Bay area cities close to the Bay.

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UAD 3.6 Appraisal Fees

By on February 6, 2026   /   AI, AMCs, Appraisal fees   /   Leave a comment
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New URAR and UAD 3.6 Appraisal Fees, AMC Tech Fees

February 6, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Using trainees – the safe way
  • Will the New URAR and UAD 3.6 Impact Appraisal Fees?
  • It looks like an SF apartment complex. It’s actually a $32M estate.
  • From Dealerships to AMCs: Tech Fees as the New Normal by Desiree Mehbod
  • MY AD: New in the February 2026 issue of Appraisal Today. Book Review: Mein Comp: The Last Appraiser
  • “Because Houses Are Human” AI and Appraisers By David Hyman
  • Architecture Is About to Grow a Nervous System
  • Buildings that are alive
  • MBA: Mortgage applications decreased 8.5 percent from one week earlier

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news

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Will the New URAR and UAD 3.6 Impact Appraisal Fees?

Excerpts: With the new URAR and UAD 3.6 rolling out this year, you may be wondering what effect this will have on your fees. While there’s still a lot of uncertainty and speculation around this question, we’re sharing the opinions of professional real estate appraisers who answered our survey, “How do you anticipate the new URAR/UAD 3.6 changes will impact your appraisal fees?”

FEE INCREASES

Over 40% of respondents said they expect their appraisal fees to increase. Still, many respondents (28%) said they anticipate that fees will remain static, and 31% said they are not sure yet. Read their comments below to learn why or why not some appraisers believe their fees will increase with the new URAR and UAD 3.6.

APPRAISER RESPONSES

I Expect Fees to Increase” (41%)

“I have had ample time to practice the new 3.6 through my software and the inspection time will be increasing substantially…. Inspections are going to take some time especially if the dwelling is more than 1,000sf, which most in my market area are well above that. The report cannot be submitted until all sections are 100% complete, so there will be more time contacting agents, homeowners, town facilities, etc. Hoping the learning curve will be quicker than it appears at this point in time.”

I Expect Fees to Stay About the Same” (28%)

FEES REMAIN THE SAME

“I think it will be more labor intensive in the field but easier once you get back to the office.”

“I expect fees to stay the same. There may be less form filling; however, the analysis will remain the same. It’s not about the form or the analytics tools we use; it’s the analysis itself.”

The Bottom Line

While many appraisers anticipate that UAD 3.6 and the new URAR will initially require more time, tighter workflows, and new technology investments, the longer-term outlook is more balanced and, in many ways, promising.

Transitions of this scale often come with short-term growing pains, but clearer data standards, more structured reporting, and modernized tools are designed to create greater consistency and efficiency once the learning curve levels out. As several respondents pointed out, it will take real-world experience to understand where timelines and workloads ultimately settle.

At the same time, the new form offers appraisers a stronger platform to demonstrate the depth of their analysis, judgment, and market expertise.

To read more, Click Here

My comments: THIS IS THE HOTTEST TOPIC IN RESIDENTIAL LENDER APPRAISING. Appraiser opinions are useful but we all want to know what AMCs are planning for fees. I anticipate higher fees by AMCs, borrowers and direct lenders. I have been writing about what is happening since early this year, including details of all the “questions” and uncertainties on the SFR report.

Another significant fee factor is that many appraisers are retiring or quitting because they don’t want to learn the UAD 3.6 for appraisers. Those who stay will have lots of appraisal work as the 11-2-26 mandatory deadline approaches.

UAD 3.6 is not mandatory until November 2, 2026. The Legacy forms will be used during the transition. Will it be done by 11-2-26? Now, software vendors and lenders are way behind. 11-2-27 new mandate date???

On the plus side, 41% of appraisers said fees would go up and are positive about the new reports.

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Appraising with Limited Comps

By on January 23, 2026   /   AMCs, appraisal how to, forecast   /   Leave a comment
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Newz: Limited Comps, Freddie Mac: Property Data Collection, Avoiding ourt

January 23, 2026

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Avoiding Court
  • Arriving at a Credible Appraisal When Comparable Sales Are Limited By Kevin Hecht
  • MAPPED: The Most Expensive Home Sales of 2025—From Palantir CEO’s Record-Breaking Ranch to Florida’s Priciest Mansion
  • MY AD: The AMC Conundrum in the Appraisal Business by Dave Towne
  • From Data to Value: How Mass Appraisal Delivers Fair Market Assessments
  • Freddie Mac. Insight Articles: Property Data Collection: An Overview
  • Housing Market Predictions for 2026
  • MBA: Mortgage applications increased 14.1 percent from one week earlier

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Arriving at a Credible Appraisal When Comparable Sales Are Limited
By Kevin Hecht

Excerpts: Limited sales activity is common in rural markets, custom-home neighborhoods, and low-turnover areas. When comps are few, the appraiser’s task is not to find perfect matches, but to show that the selected sales are the best available indicators of value and that all departures from ideal data are well supported.

In this article, we’ll answer questions like: How far back do appraisers look for comps? How far out geographically? What other tips and tricks do appraisers use to arrive at a credible appraisal, even when comps are limited? Additionally, we’ll share some insights from appraisers who answered our survey question, “What do you do when appraisal comps are few?”

When recent, proximate, and similar sales are unavailable, appraisers typically rely on some combination of the “Three D’s” to broaden their search for comparable property sales:

Dated – Search for older sales within the subject neighborhood.Distant – Search for similar sales farther away in competing neighborhoods.

Dissimilar – Search for dissimilar sales within the subject neighborhood by widening the parameters for improvements (GLA, age, features, etc.).

How Far Back Do Appraisers Look for Comps?

Time adjustments draw scrutiny. Most agency assignments expect appraisers to use the most recent closed sales available, typically within the prior 12 months when possible.1 When older sales are used, market conditions adjustments often become central to the analysis.

Time adjustments should be supported with clear data, applied consistently, and reconciled logically. Underwriters pay close attention to whether these adjustments reflect documented market behavior rather than assumptions, particularly in shifting markets.

We surveyed our appraisal community to find out, “What do you do when appraisal comps are few?” The following comments show how individual appraisers often put their own spin on the “Three D’s” when expanding the search for comparable sales:

“Time and distance. My preference is to go back farther in time within the same neighborhood and/or market area and make market condition adjustments. If that still doesn’t provide enough comps, I expand the market area, looking for more recent sales with similar characteristics to the subject property.”

“First consider a broader time frame. Market conditions adjustments are very supportable.”

“Expand search to other competitive neighborhoods. Next, go back in time.”

To read more, Click Here

My comments: I usually go back in time sometimes several years or longer if needed. Of course, I don’t do GSE appraisals with their restrictions…

 

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