Newz: Appraiser Obsolescence, ASB – Use of Technology in an Appraisal or Review
April 10, 2026
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: Subpoena Threat Over a 10-Year-Old Appraisal
- Flags Over Facts: The Road to Obsolescence By Desiree Mehbod
- Mayfield Ranch: The $4.5 Million Texas Estate on 100 Acres That Looks Like It’s Been Standing for Centuries
- April Fools Day and Other Important Dates in Appraisal History
- MY AD: How to Cut Business Expenses
- March 2026 Housing Market Updates for Appraisers By Kevin Hecht
- ASB Proposed New Advisory Opinion 41, Use of Technology in an Appraisal or Appraisal Review Assignment
- MBA: Mortgage applications decreased 0.8 percent from one week earlier
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Flags Over Facts: The Road to Obsolescence
By Desiree Mehbod
Excerpts: For years, appraisers have been warning that the mortgage industry was slowly engineering us out of the process. We were told we were paranoid. Resistant to change. Stuck in the past. Then the newest Mortgage Credit Executive Order arrived, and the appraisal section opened with a single line that confirmed everything we’ve been saying: expand AVMs, desktops, hybrids, and AI. That’s the priority. Everything else in that section is just polite filler wrapped around a strategy to shrink the role of the human appraiser until we’re little more than a signature at the bottom of a dataset.
And that strategy becomes even clearer when you look at what’s happening behind the scenes. While UAD 3.6 is not fully active yet, the structure being built around it makes the intention impossible to miss. The new system demands an avalanche of hyper‑granular data that has nothing to do with how appraisers actually determine value. Room‑by‑room material ratings, finish classifications, fixture‑level detail, micro‑condition scoring. It’s a level of data extraction designed for machines, not humans.
No buyer cares whether the guest bath faucet is “mid‑grade chrome” or “builder‑grade brushed nickel,” but the new dataset does. Not because it improves valuation, but because it feeds the models. UAD 3.6 turns every full appraisal into a data‑mining operation, with the appraiser acting as the human data‑collection device for a system that wants our expertise now so it can automate it later.
To read more, Click Here
My comments: Worth reading. Discusses VA, Road to Housing Act and other topics. Knowledgeable author – the founder of Appraisers Blogs.
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Mayfield Ranch: The $4.5 Million Texas Estate on 100 Acres That Looks Like It’s Been Standing for Centuries
Excerpts: 4 bedrooms, 3.5+ baths, 5,270 sq.ft., 101.t acre lot, built in 1999
3.5+ baths
At first glance, Mayfield Ranch might give some buyers pause. Set deep within more than 100 acres of wild Texas farmland, the imposing stone residence at 3777 Middle Creek Road in Blanco carries an undeniably mysterious presence.
The home has been on and off the market for several years and was most recently listed in mid-March for $4,500,000. It’s currently represented by Rains Mayfield.
Located roughly an hour from Austin, the sprawling ranch offers a rare blend of seclusion and craftsmanship that feels worlds away from modern suburban living.
Outside, the property offers endless possibilities for buyers, given that the land remains largely untouched. There’s ample space to transform the acreage into a working ranch, private retreat, or even a legacy property.
To read the listing with aerials and 40 photos, Click Here
My comment: Some very interesting interior photos.
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April Fools Day and Other Important Dates in Appraisal History
How the Profession Learned to Watch the Calendar
By Mark Buhler
Excerpts: If you’ve been in the appraisal profession long enough, you don’t measure time by years—you measure it by changes.
You remember where you were when HVCC hit. You remember when AMCs took over your phone line. You remember when fees dropped, when revisions increased, when language suddenly mattered as much as data.
And if you’ve been around just a little longer, one date probably stands out more than most:
April Fools Day. Because in this profession, some of the most important changes haven’t just been impactful—they’ve been ironic. 1989: When Licensing Became Reality
The modern appraisal profession, as we know it today, was largely born out of the Savings and Loan Crisis of the 1980s.
More than 1,000 financial institutions failed, costing taxpayers over $150 billion. In the aftermath, one issue became impossible to ignore: there was no consistent system governing how real estate was valued.
The response was FIRREA in 1989.
For the first time, appraisers were required to be licensed or certified for federally related transactions. USPAP became the recognized standard, and federal oversight entered the profession.
This was a necessary step. It brought structure, credibility, and accountability.
But like many changes in this profession, it didn’t come as a preventative measure. It came after the damage was already done.
My comments: A good reminder of when, why and how appraising changes were made and are being made now.
Many of these changes only relate to lender appraisals, for most appraisers. I have not done residential lender appraisals since 2005, but licensing significantly affect all of appraising due to licensing, USPAP, Appraisal Foundation, etc. I started doing lender appraisals in 1986.
Appraising was much better before licensing. Again and again appraisers have been an easy target: no one speaking for us. Most recently was bias and bias mandatory CE classes.
To read more, Click Here
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How to cut business expenses
In the paid monthly Appraisal Today newsletter
Excerpts: This article focuses on cutting business expenses for appraisers. Appraisal volume is down for many appraisers. No one knows how long this will last as we transition to UAD 3.6 and mortgage interest rates remain high.
A few ideas:
Where do you spend your money? Tax time is a good time to do this.
Go through your bookkeeping records and credit cards, looking for expenses
that may not be necessary. Do this for your personal and business expenses.
Many credit card companies have downloadable data that is sortable by vendor or type of expense.
As I usually do when writing an article on this topic, I tried the ideas myself. I am now saving over $1,000 per month.
Look through recurring credit card charges. We often need to remember about monthly, quarterly and annual services that we use sparingly. Although they usually are nominal individually, they can add up.
These are typically for online services and business publications.
Review your credit card statements. Here are a few I found:
– A data service I use sparingly and downgraded my plan.
– Stopped a monthly computer checkup that I can do myself.
Here are a few ideas for what you can look for:
– MLS in areas you don’t work very often. Find another appraiser or real estate agent who can help you.
– A less expensive public records data service.
– Downgrade your Internet service to a slower speed.
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March 2026 Housing Market Updates for Appraisers
By Kevin Hecht
Excerpts: Just as the spring market showed early signs of stabilization, March delivered a reminder that housing rarely moves in a straight line. Mortgage rates ticked higher, cost pressures resurfaced, and policy uncertainty increased.
For appraisers, the challenge is not simply recognizing change, but determining how quickly those changes are influencing buyer behavior, builder decisions, and ultimately, market value.
Periods like this rarely produce clear signals. Instead, they require careful interpretation of incomplete data, supported adjustments, and clear communication within the appraisal report.
Inflation Pressures Reenter the Conversation
Two developments in March introduced renewed inflation concerns that could influence housing activity through the second quarter.
Geopolitical tensions contributed to volatility in global energy markets, placing upward pressure on mortgage rates. According to the Freddie Mac Primary Mortgage Market Survey, the 30-year fixed mortgage rate moved back above recent lows as financial markets adjusted to inflation risk. Even relatively modest rate increases can affect qualification thresholds, monthly payments, and buyer timing decisions.
At the same time, increased global trade tensions are expected to influence construction costs, particularly for imported materials. Builder commentary published through the NAHB Eye on Housing continues to highlight cost sensitivity related to supply chains, labor availability, and financing conditions.
For appraisers, the primary concern is not simply cost increases, but the speed at which those changes begin to influence listing prices, builder incentives, and concession patterns. Cost data that appeared stable earlier in the year may now require additional support and explanation, particularly where replacement cost estimates are sensitive to material pricing fluctuations. March serves as a reminder that housing markets respond to a wide range of influences beyond seasonal patterns. Interest rates, policy decisions, global events, and construction costs all interact to shape buyer and seller behavior.
For practicing appraisers, the fundamentals remain unchanged:
Rely on current, local market evidence whenever possible.
Analyze concessions carefully to understand effective sale prices.
Verify financing terms that may influence contract prices.
Support adjustments with clearly documented reasoning.
Explain changing market conditions within the report narrative.
Avoid broad assumptions based solely on national trends.
Markets do not need to be in crisis to become more complex. Transitional periods often require more careful support, more detailed commentary, and greater attention to timing differences between comparable transactions.
Automated tools can identify patterns, but they often lag when conditions shift quickly. The ability to interpret evolving data and communicate conclusions clearly remains central to professional appraisal practice.
To read more, Click Here
My comments: There are many similar analyses available, but this is the only one that says what the changes mean for appraisers. It is the only analysis that I always read. Written by an appraiser who is an economist.
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ASB Proposed New Advisory Opinion 41, Use of Technology in an Appraisal or Appraisal Review Assignment
Excerpts: We wanted to share a brief summary of the Appraisal Standards Board’s Second Exposure Draft for Proposed Advisory Opinion 41 (AO-41), titled Use of Technology in an Appraisal or Appraisal Review Assignment (March 12, 2026), and highlight some important implications for the real estate appraisal profession.
The purpose of AO-41 is to clarify how existing USPAP requirements apply when appraisers use technology in appraisal and appraisal review assignments. This includes tools such as Automated Valuation Models (AVMs), regression and statistical software, machine learning, artificial intelligence (AI), and other automated or semi-automated systems. Importantly, this draft does not create new USPAP standards. Instead, it provides guidance on how current USPAP obligations already apply when technology is used.
The most important takeaway is that technology may assist the appraisal process, but it does not replace the appraiser’s professional judgment. AO-41 makes it clear that a tool cannot comply with USPAP—only the appraiser can. Any data, analysis, or output produced by a tool remains just that: information. It does not become an appraisal conclusion or assignment result unless and until the appraiser independently evaluates it and determines that it is credible and appropriate for the intended use.
Overall, this proposed guidance is significant because it formally recognizes the growing role of AI and other technologies in appraisal practice while reinforcing a core USPAP principle: the appraiser—not the technology—is always responsible for the credibility of the assignment results..
Deadline for public comment is April 13, 2026
To read more, Click Here
My comments: Thanks to Green Mountain eLearning for this timely article. Worth reading. Good to see that the ASB is writing about this very important topic and what it means for appraisers.
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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 decreased 0.8 percent from one week earlier
WASHINGTON, D.C. (April 8, 2026) — Mortgage applications decreased 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 April 3, 2026.
The Market Composite Index, a measure of mortgage loan application volume, decreased 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 3 percent from the previous week and was 4 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 7 percent lower than the same week one year ago.
“Higher mortgage rates and continued economic uncertainty weighed down on mortgage applications again last week. While mortgage rates saw a slight reprieve, with the 30-year fixed rate decreasing to 6.51 percent, many potential refinance borrowers have been frozen out by the sharp increase over the past month. The pace of refinance applications was at its lowest level since December 2025,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Overall purchase activity has also been adversely impacted by current conditions – purchase applications were 7 percent lower on a year-over-year basis, the first annual decline since January 2025. However, certain loan types and geographic segments are faring better than others because of lower rates on ARM and FHA loans as well as growing housing inventory in some local markets. Applications for FHA purchase applications were up 5 percent over the week, supported by the FHA mortgage rate being about 30 basis points lower than the conventional mortgage rate.”
The refinance share of mortgage activity decreased to 44.3 percent of total applications from 45.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.6 percent of total applications.
The FHA share of total applications decreased to 19.3 percent from 19.5 percent the week prior. The VA share of total applications remained unchanged at 16.1 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) decreased to 6.51 percent from 6.57 percent, with points decreasing to 0.61 from 0.65 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.54 percent from 6.59 percent, with points decreasing to 0.35 from 0.43 (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 decreased to 6.22 percent from 6.25 percent, with points decreasing to 0.73 from 0.81 (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 5.90 percent from 5.89 percent, with points decreasing to 0.74 from 0.75 (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 5.60 percent from 5.67 percent, with points increasing to 0.68 from 0.56 (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
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
