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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Surplus vs. Excess Land for Appraisers

By on August 14, 2026   /   appraisal business, appraisal how to, non-lender appraisals, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: Surplus vs. Excess Land,
Easement Issues and Liability

August 14, 2026

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

  • LIA AD: Easements: Issues and Appraiser Liability
  • Surplus Land vs. Excess Land: What Appraisers Need to Know, By Kevin Hecht
  • Built Different: How the Ranch-Style Home Went from 1930s Architectural Rebel to America’s Favorite Floor Plan
  • Let’s Talk About Letters of Engagement, By Jeff Whaley
  • MY AD: UAD 3.6 Software Evaluation Checklist
  • An Abridged History of the Appraiser Profession, By Kendra Budd, Editor Working RE
  • My UAD 3.6 Tips of the Week
  • MBA: Mortgage applications increased 3.6 percent from one week earlier

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Surplus Land vs. Excess Land: What Appraisers Need to Know

By Kevin Hecht

Excerpts: Land valuation is a fundamental aspect of real estate appraisal, influencing property transactions, development decisions, and investment strategies. A key part of the process involves distinguishing between the land that supports the property’s current use and any additional land that may or may not have independent value.

Commonly, a square footage adjustment is made based on lot size differences among comparable properties without one key distinction: whether the difference in land is surplus or excess land. This fails to consider whether the extra land has value independent of the subject property.

Surplus land generally does not contribute value beyond its association with the primary parcel, though it may still add some contributory value in certain market conditions. Excess land, by contrast, has value because it can be divided and sold separately.

Understanding this distinction is essential for developing a credible appraisal.

Surplus Land vs. Excess Land at a Glance

Surplus Land – Cannot be separated and sold independently

Excess Land – Can be divided and sold separately

Surplus Land – No independent highest and best use

Excess Land – May have a different highest and best use

Surplus Land – Typically contributes limited additional value

Excess Land – Has independent value and should be analyzed separately

Surplus Land – Remains part of the primary property

Excess Land – Can potentially support separate development

Key Differences Between Surplus and Excess Land

Surplus and excess land apply to commercial and residential properties. Before determining whether land is surplus or excess, appraisers must consider zoning, highest and best use, surrounding properties and their use, property improvements, and supply and demand for the property and any proposed improvements.

Why the Distinction Matters in Appraisal

Choosing the correct land type has an effect on the final value of the property. Excess land adds value to the subject property and creates future potential. Thus, a higher price per square foot should be assigned to excess land over surplus land.

Ultimately, identifying land type is about more than just checking if a property can be split. It’s about understanding the property’s most productive use under current legal and economic conditions.

To read more, Click Here

My comments: Read this article!! The best comprehensive article I have read on this issue. Understanding Surplus vs. Excess Land is critical in appraising. I have encountered this issue mostly in commercial and agricultural appraisals. It can happen in any type of property.

Unfortunately, residential lender appraisers sometimes encounter this but don’t know much about it. I have appraised it on single family properties. Not understanding what this is of the many ways residential appraisers end up trouble at the state appraisal board because of lack of knowledge and experience.

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.

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Fannie Appraiser Update

By on July 24, 2026   /   Fannie, FHA, UAD 3.6   /   Leave a comment
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Newz: Fannie Appraiser Update, Kentucky Board Approves Increase in Licensing Fees

July 24, 2026

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

  • LIA AD: Client Insists on Cost to Cure
  • Fannie Mae Appraiser Update, July 16, 2026
  • Glittering L.A Megamansion With ‘Dramatic’ 50-Foot Water Wall and Swim-Up Hits the Market for $88 Million
  • Kentucky Board Approves Significant Increase in Appraiser Licensing Fees
  • MY AD: Doug Smith’s tips on selecting UAD 3.6 software
  • Honoring Jan Bellas, Our Greatest Advocate
  • Where Does an FHA Appraisal End and a Home Inspection Begin? HUD Has an Opportunity to Clarify. By Shane White, SRA (REPRINT)
  • Upcoming National Appraisal Conferences in Las Vegas
  • MBA STATS: Mortgage applications increased 1.9 percent from one week earlier

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Fannie Mae Appraiser Update

July 16, 2026

Get practical guidance to help you prepare for the Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign transition and stay current on updates that affect your work.

In this second Appraiser Update of 2026—and our 35th edition since launching in 2017—we’re sharing timely insights, policy updates, and resources to help you navigate industry changes and support your success.

In this issue, you’ll find:

Expert insights on key UAD 3.6 topics, including terminology updates, policy changes, unit counts, and more.

What Appraisal Management Company access to Collateral Underwriter® (CU®) means and how to navigate it effectively.

List of Topics

  • Changes to UAD language in 3.6
  •  Unit Count Differences in the Sales Comparison Grid
  •  UAD 3.6 Reports: Lessons Learned
  •  AMC Access to Collateral Underwriter

Sample Topic detail

Vet Comments for Accuracy and Necessity

Some of the most common problems we have seen in UAD 3.6 appraisal reports relate to inaccurate or unnecessary comments. Here are some actual cases that illustrate the issue:

Contradictory information: In the SCA grid, an appraiser correctly utilized the Comparable Weight field to state that Comp 1 was given most weight and Comps 2-3 were given less weight, but then the appraiser added a comment that “The final opinion of value has been weighted equally among comparable sales 1-3.” The contradiction between the information in the enumerated data versus the narrative comment is confusing to the reader and undermines the appraiser’s credibility. A more helpful and appropriate comment would explain why comp 1 merited the most weight.*

Repetitive information: Another common issue we have seen in UAD 3.6 reports is the appraiser repeating the condition rating (already stated in a defined data element) in the associated comment field.*

Outdated language: In another report, an appraiser commented in the Sketch Commentary field that “The GLA for the subject was derived by…” Of course, the term “GLA” or Gross Living Area has been replaced in UAD 3.6 with the term “above grade finished area” (see accompanying article in this newsletter), so the reference to GLA was a non sequitur and confusing to the reader.

*These cases illustrate the general principle that appraisers should not restate information already contained in the defined data elements.

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My comments: Definitely worth reading for excellent “how to” advice on UAD 3.6.

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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
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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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GSEs New Info on Completing UAD 3.6

By on July 3, 2026   /   Appraiser Survey, Freddie, GSEs, UAD 3.6   /   Leave a comment

Newz: GSEs New Info on Completing UAD 3.6,

2026 Appraiser Survey: State of the Profession

July 3, 2026

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

  • LIA AD: Buyer Wants Lower Price to Negotiate
  • 2026 Appraiser Survey: State of the Profession By Isaac Peck, Publisher, WorkingRe
  • Abandoned 1822 Federal-Style Estate That Was Relocated and Then Carefully Rebuilt Hits the Market for $1.6 Million
  • Can (Should) AI Replace Your Office Staff? By Dustin Harris
  • MY AD: UAD 3.6 and the “ Tablet “ Question
  • Fannie/Freddie Job Aids for Completing URARs Using UAD 3.6
  • FHA Updates for QC requirements for Appraisal Field Reviews
  • Mortgage applications increased 0.04 percent from one week earlier

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2026 Appraiser Survey: State of the Profession

By Isaac Peck, Publisher, WorkingRe

Excerpts: Nearly one-third of all practicing appraisers plan to leave the profession within three years. Add the next cohort and roughly half intend to exit within the next five years.

Those are the headline numbers from Working RE‘s 2026 State of the Profession Survey, completed by approximately 1,800 appraisers nationwide in early 2026.

Before the retirement cliff narrative takes hold, consider this: Working RE ran a nearly identical question in its 2016 Future of Appraising Survey. At that time, 33 percent of respondents planned to retire within five years, and more than half within 10 years. Today, a decade later, most of them are still appraising.

The pattern goes back further still. In a 2009 Working RE survey (18 years ago), conducted at the bottom of the financial crisis with over 6,200 respondents, over 53 percent of appraisers said they did not expect to be appraising full-time five years from then. While the profession did see some attrition over the next five years due to the incredibly slow market that followed the 2008 real estate crash, the fallout was nowhere close to 50 percent of the profession, or even 25 percent.

Appraisers consistently overpredict their own demise.

Different This Time?

Working RE spoke with Jim Park, President of the Collateral Risk Network (CRN) and the former Executive Director of the Appraisal Subcommittee, to get his read on the survey findings. Park says the 2026 numbers reflect a genuine inflection point, not a repeat of the false alarms that preceded them.

“This time it’s different,” Park says. “We’ve reached a point where a number of things are happening at the same time. The average age of an appraiser has to be in the range of 60 to 65. That’s retirement age. On top of that, depending on who you talk to, 10 to 25 percent of appraisers could cease doing mortgage work because of UAD 3.6 alone. How many will ultimately adapt to the new form? How many will come back after sitting it out? We’ll see. But I’m more concerned about the lack of new people getting into the business than I am about the people who might leave.”

UAD 3.6: The Readiness Gap

The November 2, 2026 mandatory compliance deadline for UAD 3.6 is roughly four months away. While Working RE‘s survey ended March 15 (three months prior to this publication), even if we account for a rapid ramp up, the data suggests that the profession is not ready.

The Takeaway

Taken together, the 2026 survey describes a profession that is older and more experienced than it has ever been. Appraisers remain skeptical of hybrid products, are divided on credentialing, and approaching one of the most significant form changes in decades largely untrained. The retirement numbers are alarming on their face but unconvincing as a cliff narrative. Working RE‘s own historical data makes that case directly.

What the 2026 data cannot tell us is whether UAD 3.6 will finally push appraisers into retirement in a way that past challenges failed to do.

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My comments: Very interesting. Worth reading. Many topics with graphs and other data. The only recent appraiser survey I have seen.

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AQB Exposure Draft Removes College Degree Requirement

By on June 25, 2026   /   appraisal business, AQB, E&O, liability, UAD 3.6   /   Leave a comment
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Newz: Appraisal Stress Test, AQB Exposure Draft Removes College Degree Requirement

June 26, 2026

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

  • LIA AD: State Board Complaint Frustrations
  • The Appraisal Profession Is Being Stress-Tested. That’s Not the Same as Being Replaced By Jessica Sturm
  • All About the Brownstone: How the Iconic Design Went From Humble Row House Roots to Million-Dollar Metropolis Luxury
  • MY AD: UAD 3.6 Software Evaluation Checklist By Doug Smith
  • Include E&O in Appraisal Reports? Just Say No By Isaac Peck
  • AQB second exposure draft removes college degree requirement
  • MBA STATS: Mortgage applications increased 1.0 percent from one week earlier     
  • ———————————————————

 

The Appraisal Profession Is Being Stress-Tested.

That’s Not the Same as Being Replaced

A frank conversation about UAD 3.6, waiver expansion, and where the real opportunity lies.

By Written by : Jessica Sturm, EVP of Property Services at Opteon.

Excerpts:

What UAD 3.6 Actually Changes (And What It Doesn’t)

UAD 3.6 changes the infrastructure around how appraisal judgment is captured, structured, and delivered. It does not change what a great appraiser does and the value they bring. Your ability to walk a property and know, as a trained professional, that the finished basement wasn’t permitted, that the kitchen renovation was done on the cheap or that the comparable three streets over sold under pressure. None of that local, industry expertise lives in a data schema.

What the new standard demands is that the mechanics around that judgment are handled cleanly and consistently. Field data capture, structured commentary, condition ratings, quality flags, all in a format that downstream systems can use. That’s not a threat to expertise. We see this as a long-overdue investment in the infrastructure that supports our industry.

What the Stress Test Is Really Asking

Every industry stress test asks the same question: who is built for what comes next?

UAD 3.6 is asking whether the profession can operate with greater rigor and efficiency. Waiver expansion is asking whether appraisers can own the complex, high stakes, advisory end of the market with real authority. The mature appraiser pipeline is asking whether the profession can retain experience and retrain while bringing in and developing new people. These are hard questions, but the profession has more tools, more data, and more support to answer them than at any point in its history.

Accounting faced the same reckoning. When tax software arrived and then matured, the prediction was that it would hollow out the profession. Routine compliance work did automate and what happened next was the opposite of collapse.

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My comments: Interesting analysis. I think the new reports are much better than the old forms for reviewers and borrowers. If I was doing GSE appraisals I would look forward to doing them.

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UAD 3.6: The Appendices

By on June 19, 2026   /   real estate market, UAD 3.6   /   Leave a comment
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Newz: UAD 3.6: The Appendices, Will Florida Governor Eliminate Property Taxes?

June 19, 2026

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

  • LIA AD: Expanding Intended Users? Not So Fast
  • UAD 3.6 Answer Headquarters: The Appendices
  • Private Island for Sale: 25-Acre Historic Maine Estate Lists for $3.85 Million
  • Buying a private island & prices are now higher than last year
  • By Ryan Lundquist
  • MY AD: Doug Smith’s tips on selecting UAD 3.6 software
  • Florida Gov. Ron DeSantis Unveils His Plan To Virtually Eliminate Property Taxes
  • A record 242 U.S. cities now have starter homes that cost $1M
  • MBA STATS: Mortgage applications decreased 3.8 percent from one week earlier

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UAD 3.6 Answer Headquarters: The Appendices

Excerpts: Start Here: The Appendices as Your Foundation

When Fannie Mae and Freddie Mac rolled out UAD 3.6, they published an entire documentation ecosystem to go with it. That ecosystem includes a full suite of appendices (A-1 through G-1), each serving a specific purpose. Some are highly technical and aimed at software developers and data delivery. But for appraisers doing the day-to-day work of completing reports, three appendices are essential core references: F-1, C-1, and D-1.

Here’s how each one functions:

Appendix F-1: The Field-by-Field Reference Guide

If there’s a single document that deserves the title of “master manual” for the dynamic URAR, it’s Appendix F-1. This is your comprehensive field guide. It details every possible field in the report, specifies when each field is required (and when it’s conditional), defines what answers are acceptable, and explains how data must be formatted.

Appendix C-1: Your Visual Roadmap

If F-1 is the user manual, C-1 is the map. Appendix C-1 is a visual layout of the dynamic URAR that shows every possible field and label that could appear in a report, giving you a complete picture of the report’s full scope before you ever open an assignment.

Appendix D-1: Context and Practical Examples

While F-1 and C-1 handle the mechanics of the report, Appendix D-1 adds interpretive depth. This appendix provides sample scenarios that show how specific data elements fit into the overall appraisal and are particularly useful when you’re dealing with edge cases or less common property situations.

Layer In the Selling and Servicing Guides

The appendices answer the “how” of UAD 3.6. For the “why”—the policy context and secondary market expectations behind those requirements—you need to work with the Fannie Mae and Freddie Mac Selling and Servicing Guides.

To read more details in the article, Click Here

For more information, go to Fannie’s Uniform Appraisal Dataset page,

Click Here To read the documents scroll down the page

My comments: This is the best explanation of the GSE AD 3.6 documents. Read this article!! UAD 3.6 can be confusing with many documents available. This article breaks them down so you can understand what they do.

When I took my first UAD 3.6 class “Appraiser’s Guide to the New URAR” in early 2025 it was overwhelming and mostly went over F-1. Now I know what the other documents cover.

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