Artificial Intelligence Will Not Replace Appraisers

By on September 18, 2026   /   ADUs, AI, AMCs, FHA, UAD 3.6   /   Leave a comment
Tags: , , ,

Newz: Freddie ADU Guide, AMCs, AI and Appraisal Photos, FHA QC Changes

September 18, 2026

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

  • LIA AD: Expanding Intended Users? Not So Fast
  • A Practical Guide to Appraising Accessory Dwelling Units (ADUs) By Freddie Mac
  • Artificial Intelligence Will Not Replace Appraisers By Tony Pistilli
  • Former 1847 Ohio Jail Goes Under Offer for $400K: How One Family Turned Inmate Cells Into Pantries and Closets
  • MY AD: The Appraisal Triangle: Knowledge. Experience, Aptitude and Attitude
  • HUD Rewrites FHA Appraisal Quality Control by Kenneth J. Mullinix
  • If the Management Model Is So righteous, Spread It Around (AMCs)
  • MY UAD 3.6 UPDATE How the get the list of GSE validated UAD 3.6 software vendors, Facebook page to read appraiser comments on UAD 3.6 software.
  • MBA stats: Mortgage applications decreased 4.1 percent from one week earlier

A Practical Guide to Appraising Accessory Dwelling Units (ADUs)

By Freddie Mac

Excerpts: Sample Topics:

Appraisal Considerations:

Firstly, an appraiser can’t simply ignore an ADU. If the determination is made that additional finished area qualifies and meets the definition of an ADU, there are some practical steps the appraiser must take in the analysis.

Appraisal Development:

The appraiser will need to determine any effect the ADU has on the market value or marketability of the subject property. The appraiser’s analysis must be documented in the appraisal report and conclude whether an adjustment is supported for the ADU (remembering that the conclusion for no adjustment also requires market support).

Allowable Flexibility:

A good best practice for any appraiser is to reference and use Freddie Mac resources and published appraisal guidelines, which detail the steps an appraiser may take when valuing a property with an ADU. If a subject property ADU complies with zoning and land use requirements, the appraisal report must include at least one comparable sale with an ADU. If not available, then the appraiser may consider an older sale from the subject’s market or a competing market. The appraiser may also expand the search and comparison beyond just three sales, including pending contract sales or listings to justify the support for adjustments.

My comments: If you appraise ADUs, or are just curious, read this article from Freddie Mac!

To read more, Click Here

My comments: If you appraise properties with ADUs, read this detailed and practical advice for appraisers.

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Former 1847 Ohio Jail Goes Under Offer for $400K: How One Family Turned Inmate Cells Into Pantries and Closets

Excerpts: 3 bedrooms, 3 baths, 2,690 sq.ft., 0.5 acre, built in 1947

When most people sit down for Sunday dinner, they aren’t staring directly into 19th-century jail cells. But for listing agent Caroline Hoffmann, having remnants of 19th-century law enforcement in the dining room was just part of normal family life.

The historic Old Wood County Jail at 240 W Indiana Ave in Perrysburg, OH—currently under contract with a contingent offer on its $400,000 listing—isn’t just an unusual piece of real estate to Hoffmann. It’s her family’s legacy.

“I think the fact that it still has the original jail cells intact is what really gets people’s attention all the time,” Hoffmann says. “Everybody wants to know if it’s haunted. It’s not.”

While the 2,960-square-foot brick property was originally constructed in 1847 and functioned as a county lockup until 1870, its modern history is deeply personal. The building served as the city jail until 1899, after which the public record goes quiet until 1918. That’s when Hoffmann’s family history with the structure began.

“My great-great-grandfather bought it from his brother-in-law in 1924. His brother-in-law had purchased it in 1918,” Hoffmann explains.

The structure was subsequently converted into three individual apartments—one on the lower level and two on the upper floor, each configured with one bedroom, a bathroom, and a small kitchen. Over the decades, it operated as a steady investment property.

To read the listing, with a floor plan and photos, Click Here

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Artificial Intelligence Will Not Replace Appraisers

But appraisers who understand and use it responsibly will replace those who do not

By Tony Pistilli

Artificial intelligence has officially moved from the magical and mysterious into the mainstream of appraisal practice. Among the most significant forms of artificial intelligence entering the appraisal profession today is computer vision. This technology allows computer models to “see” pictures in ways that once, only human eyes could.

For many appraisers, this will raise understandable questions: How does this technology actually work? What are my obligations under USPAP? And how do I use artificial intelligence without getting in trouble with the state board?

And of course, many will also ask: If I use this, am I only contributing to the elimination of appraisers?

The answers point to a simple conclusion: Artificial intelligence does not replace appraisers. It rewards those who understand and use it well.

How Computer Vision Is Trained to “See” What We See

Computer vision is a subset of artificial intelligence that enables computers to extract information from pictures. This is much like what appraisers do today: We see a fireplace, write it down, and eventually type it into the form.

The Enduring Relevance of Appraisers

Virtually every respected profession has faced similar technological sea changes. Accountants weren’t replaced by Excel spreadsheets, radiologists weren’t replaced by imaging software, and attorneys weren’t replaced by online databases. These professionals got better, faster, and more accurate at analysis, diagnostics, and legal research. Their value remained intact.

Appraisers will be no different.

To read more, Click Here

My comments: Good analysis. The author has a software company using AI on photos and is very knowledgeable.

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Appraisers, at this time must accept that “the order is rapidly fadin” and the whole appraisal world is headed to new horizons. The traditional elements of knowledge, experience and aptitude qualities require sharpening and enhancement,

By Doug Smith, SRA

In the September 2026 issue of Appraisal Today

Editor’s comment: Doug did the above very good image himself in Chatgpt!
He will be writing a very understandable article on how to use Chatgpt for appraisers for the November 2026 issue.

Excerpts: The traditional appraisal practice is represented by a three-sided triangle with two sides of knowledge and experience on a foundation of aptitude.

As important as all three of these are in a successful practice, attitude

remains the driving force. Attitude is the main requirement at this moment in time as the profession has always rewarded those willing to learn.

Appraisers, at this time must accept that “the order is rapidly fadin” and the

whole appraisal world is headed to new horizons. Appraisers, at this time must accept that “the order is rapidly fadin” and the

whole appraisal world is headed to new horizons.

The traditional elements of knowledge, experience and aptitude qualities require sharpening and enhancement,

Artificial Intelligence, UAD 3.6, new inspection technology, cloud computing, tablets, mobile workflows, XML reporting, and appraisal waivers are converging almost simultaneously. It is understandable that many appraisers feel overwhelmed.

Social media pages and discussion groups have become filled with

questions, software concerns, and uncertainty. Yet every profession reaches

moments like this. The issue is not whether change is occurring. The issue is how we respond to it. During times of uncertainty, the easiest decision is to make no decision.

Yet history shows that periods of greatest change reward those who

continue learning and adapting rather than standing still. Appraisers are uniquely trained to reconcile conflicting evidence. That is what the sales comparison approach teaches every day. Appraisers don’t wait for perfect comparable sales; they analyze imperfect information and arrive at a supported opinion.

Perhaps the greatest irony is that appraisers should be among the people

least afraid of uncertainty, because uncertainty is the environment in which they have always worked. Knowledge, experience and aptitude qualities require sharpening and enhancement,

To read the very interesting full article, plus 3+ years of previous issues, subscribe to the paid Appraisal Today at www.appraisaltoday.com/order .

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September, 2026 issue emailed on

Tuesday, September 2, 2026 please email info@appraisaltoday.com, and we will send lt to you. You can also hit the reply button. Be sure to include a comment requesting it. Or, call 510-865-8041

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HUD Rewrites FHA Appraisal Quality Control

by Kenneth J. Mullinix

Excerpts: Significant changes to the appraisal profession rarely arrive with headlines. Instead, they appear in agency guidance, revisions to underwriting manuals or updates to long-standing administrative procedures. Although these policy changes often receive little public attention, they can significantly influence how residential appraisers, lenders and appraisal management companies conduct business.

HUD Mortgagee Letter 2026-10 is one such change. Effective June 23, the U.S. Department of Housing and Urban Development (HUD) eliminated the long-standing requirement that FHA-approved lenders obtain appraisal field reviews on at least 10% of selected quality control loan files. While the revision appears procedural, it represents one of the most significant changes to FHA appraisal quality control in recent years.

More importantly, the Mortgagee Letter reflects a broader shift in regulatory philosophy — from prescribed review requirements to risk-based quality management that gives lenders greater flexibility while maintaining accountability for appraisal quality. For residential appraisers, it also provides insight into the future direction of federal appraisal oversight.

The New Rule

Mortgagee Letter 2026-10 eliminates the mandatory 10% sampling requirement. Instead of requiring appraisal field reviews on a fixed percentage of quality control files, HUD now permits lenders to determine whether a field review is warranted based on their assessment of collateral risk.

Why HUD Made the Change

HUD’s rationale is both practical and economic. According to the agency, mandatory appraisal field reviews often produced limited additional benefit while imposing measurable costs on lenders. HUD estimated that eliminating the requirement could save the mortgage industry approximately $3.3 million annually. What It Means for Appraisers

Some appraisers may initially view the revised policy as a reduction in appraisal oversight. It is not.

Every FHA appraisal remains subject to lender review, underwriting analysis, automated quality control systems and potential post-closing examination. USPAP obligations and FHA reporting requirements remain unchanged, and appraisers remain responsible for producing credible, well-supported opinions of value.

For experienced appraisers, the practical impact should be minimal. Sound market analysis, logical adjustments, thorough documentation and transparent reporting remain the best defense against any form of appraisal review.

To read more, Click Here

To read the Mortgagee Letter 2026-10 Click Here

My comments: Detailed article. If you do FHA appraisals, check it out.

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If the Management Model Is So righteous, Spread It Around (AMCs)

Excerpts: If the management model were truly noble, it would not stop at appraisers. Yet somehow the babysitting service never expands beyond us.

Once upon a time there was a profession that stood between the public and chaos. For forty five years I watched that profession take every punch the mortgage world could invent. Every market dip, every delayed closing, every regulatory shift, every headline looking for a villain landed on the appraiser. We carried it because we understood the role. We were the guardrail.

But when the word racist became fashionable, that was the breaking point. Appraisers were already the most over regulated people in the entire mortgage process. It was absurd to pretend that lawyers, originators, brokers, realtors, AMC’s and bankers were spotless while appraisers alone were the problem. That conclusion was not logical. It was convenient. And it became the narrative.

And here is the part that never gets said out loud. Why are appraisers the only ones being managed? Why is there an entire shadow industry built to supervise, monitor, and skim off the work of one profession while lawyers, originators, bankers and everyone else walk free? If management companies are such a brilliant idea, why not apply them to the legal world? Why not assign babysitters to originators? Why not force bankers to hand over most of their fee to a management company that checks their ethics and competence? If the management model is so righteous, spread it around. But it never is. It is only imposed on the appraiser.

To read more plus some interesting appraiser comments, Click Here

My comments: Short but interesting. I love the discussion of why appraisers? My answer: We have no large national association, such as NAR to speak for us.

My UAD 3.6 Update

How the get the list of GSE validated UAD 3.6 vendor software companies.

Go to https://singlefamily.fanniemae.com/integrated-vendor-list

Scroll down to Fannie Mae Product Interface

Select (scroll down) UAD 3.6 appraisal software provider then click Search.

I have included this link in other newsletters, if you can’t find the last time I included it. I check it almost every day to see what software is validated.

Fannie requires validation for uploaded appraisals. It does not mean that all the software components are completed and ready to go, such as inspection apps and AI.

As of 9/14/26 there were 10 validated vendor software approved. About 24 vendors total are anticipated.

Any UAD 3.6 software you are considering using MUST BE VALIDATED OR YOUR APPRAISALS WILL NOT BE ACCEPTED BY THE GSES.

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Facebook group to read appraiser comments on UAD 3.6 software. : “Appraisers Perspective of UAD 3.6” Search for the vendor name or the software name, such as Total. My “go to” place to see what appraisers are saying. I go there regularly.

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2026.

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Mortgage applications decreased 4.1 percent from one week earlier

Mortgage applications decreased 4.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 11, 2026. This week’s results include an adjustment for the Labor Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 4.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 15 percent compared with the previous week. The Refinance Index decreased 9 percent from the previous week and was 65 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 13 percent compared with the previous week and was 19 percent lower than the same week one year ago.

“Ongoing market concerns over spiking energy prices, persistently high inflation, and future monetary policy pushed bond yields and mortgage rates higher last week. As the 10-year Treasury inched closer to the 5 percent mark, mortgage rates followed and were almost 7 percent. The 30-year fixed rate at 6.97 percent was at its highest level since May 2025,” said Joel Kan, CMB, MBA’s VP and Deputy Chief Economist. “After adjusting for the Labor Day holiday, purchase applications dipped relative to the week prior as higher mortgage rates caused many buyers to pause their purchase decisions. The current level of rates also eliminated much of the benefit to refinance for many borrowers, resulting in declines in conventional, FHA, and VA refinance applications.”

The refinance share of mortgage activity decreased to 39.4 percent of total applications from 40.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.4 percent of total applications.

The FHA share of total applications decreased to 16.9 percent from 17.2 percent the week prior. The VA share of total applications increased to 12.4 percent from 12.0 percent the week prior. The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.97 percent from 6.85 percent, with points increasing to 0.72 from0.67 (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 7.03 percent from 6.74 percent, with points decreasing to 0.59 from 0.63 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.62 percent from 6.53 percent, with points decreasing to 0.85 from 0.86 (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 6.30 percent from 6.17 percent, with points increasing to 0.98 from 0.93 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 6.23 percent from 5.82 percent, with points increasing to 0.99 from 0.84 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

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Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email:  ann@appraisaltoday.com

Online: www.appraisaltoday.com

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Apps and Digital Tools for Appraisers

By on September 11, 2026   /   adjustments, AMCs, appraisal charts and graphs, ROVs   /   Leave a comment
Tags: , , ,

Newz: Apps and Digital Tools for Appraisers,
AMCs and Value Pressure,
Deleted MLS Photos

September 11, 2026

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

  • LIA AD: Vacant Land: Make Sure You are Appraising the Right Property
  • Essential Mobile Apps and Digital Tools for Appraisers in 2026
  • From Postwar Housing Solution to ‘Brady Bunch’ Fame—Is the Split-Level Home Ready for a Comeback?
  • Readiness Extends Beyond the Appraiser’s Report By Laurie Egan
  • MY AD: Bracketing Has No Empirical Support and Encourages Bias By Tim Andersen, MAI
  • Valutrust Turns the ROV Into a Pressure Tool
  • A Picture Is Worth a Thousand Words – Until it is Deleted
  • My UAD 3.6 News – Nov. 2??, GSEs change to residential highest and best use and reporting for UAD 3.6
  • MBA Stats: Mortgage applications decreased 2.7 percent from one week earlier

 

 

Essential Mobile Apps and Digital Tools for Appraisers in 2026

Excerpts: The appraisal profession is becoming increasingly digital. Mobile devices, cloud-based platforms, workflow automation, and data-driven reporting tools are changing how you collect information, analyze markets, and communicate results.

As you prepare for industry changes such as UAD 3.6 and the redesigned Uniform Residential Appraisal Report (URAR), now is a great time to evaluate the tools you use every day.

While no single app will solve every challenge, the right combination of mobile and desktop tools can help you improve productivity, stay organized, and create a more efficient workflow.

The categories below highlight several types of digital tools and apps to consider as you build a technology stack that supports your appraisal business into the future.

Jump to a Section

  • More Appraisal Technology Resources
  • Property Inspection and Data Collection Tools
  • Mapping, GIS, and Location Research Tools
  • Sketching and Measurement Tools
  • Productivity and Organization Tools
  • Communication and Collaboration Tools
  • AI and Emerging Technology Tools
  • Choosing the Right Technology Stack
  • Preparing for the Future of Appraisal

To read more, Click Here

My comments: Comprehensive and worth reading the details.

Read more!! →

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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

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.

Read more!! →

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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
Tags: , , ,

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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Creative Appraisal Definitions – Humor

By on June 5, 2026   /   bias, FHA, UAD 3.6   /   Leave a comment
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Newz: Creative Appraisal Definitions – Humor, FHA Modernization Minimum Property Requirements

June 5, 2026

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

  • LIA AD: Subpoena Threat Over a 10-Year-Old Appraisal
  • Creative Appraisal Definitions Humor
  • Foam Dome Home With ‘Not a Single Straight Line’ Hits the Market in Florida for $249K: ‘A Genuine Original’
  • My ad: How to decide which UAD 3.6 software to use
  • USPAP’s Typical Buyer Standard in the Fair Housing Era, By Edwin Farr, MAI
  • FHA Seeks Public Comment Regarding Modernizing Its Single Family Housing Minimum Property Requirements
  • Upcoming UAD 3.6 Bootcamp in Irving, Texas
  • MBA: Mortgage applications decreased 2.5 percent from one week earlier

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Creative Appraisal Definitions – Humor

Excerpts:

  • Purpose of the Appraisal – To make a living in the appraisal business.
  • Functional Obsolescence – That state of many older appraisers.
  • The Subject – A term police use to identify the victim of a crime.

To read more, Click Here

My comments: We can all use some appraiser humor !!

For commercial and residential appraisers.

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Foam Dome Home With ‘Not a Single Straight Line’ Hits the Market in Florida for $249K: ‘A Genuine Original’

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Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraiser

By on May 29, 2026   /   AI, bias, state appraiser regulators, UAD 3.6   /   Leave a comment
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Newz: UAD 3.6 Adapt or Step Back,

Getting Started With AI

May 29, 2026

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

  • LIA AD: Too Late for a Reconsideration of Value
  • Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraisers, By Rachel Mann
  • 109-Year-Old ‘Boathouse’ That Appears To Float on Washington Canal at High Tide Hits the Market for $2.1 Million
  • Getting Started with AI for Appraisers
  • MY AD: Loose Lips Cause Claims (Loose Lips Lead to Lawsuits) By Claudia Gaglione, Esq.
  • Wells Fargo Settles Mortgage Discrimination Suit With $100M Fund To Help Low-Income Homebuyers
  • HB 355 and What Every Appraiser Should Learn from Kentucky’s Legislative Win, By Bryan S. Reynolds, MNAA
  • MBA: Mortgage applications decreased 8.5 percent from one week earlier

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Adapt or Step Back? How UAD 3.6 Is Forcing a Career Decision for Appraisers

By Rachel Mann

Behind the technical transition lies a more personal question: Is it worth starting over at this stage of a career?

Excerpts: A Profession Split in Real Time

While there’s plenty of buzz around UAD 3.6 itself, it’s worth taking a boots-on-the-ground look at what active appraisers are actually feeling. In a recent industry poll conducted on Facebook, the findings were telling.

Out of 233 responses from active appraisers, 36.5% reported they are actively preparing, while 36.1% are taking a “wait and see” approach. The remaining responses, which we’ll get into below, reveal the deeper undercurrents.

The clear takeaway is that the industry isn’t aligned. There’s real uncertainty in how appraisers are responding to the shift, and a large unknown hanging over the profession.

And it raises a question: Is the uncertainty driven by the change itself, or by the lack of clear options for what happens next?

Appraiser Voices: Real Reactions to UAD 3.6

Beyond the “actively preparing” and “wait and see” camps, smaller groups of respondents revealed the deeper anxieties at play.

About 8.2% cited concerns about the learning curve, 4.7% said they’re considering stepping back from volume, and 2.6% plan to retreat into private work only.

Another 12% fell into smaller categories ranging from software testing readiness and hardware concerns to skepticism about implementation timelines.

The overall picture is a mix of readiness, hesitation, and resistance — revealing capacity limits and decision fatigue at a critical moment: adapt or step back? The underlying question for those nearing retirement is: Is it worth the time, cost, and effort to adapt at this stage in my career?

When a Workflow Change Becomes a Career….

A sudden decline in active appraisers could carry real consequences:

  • Loss of experienced appraisers who currently make up the majority of the workforce
  • 2. Disruption of long-standing client relationships, leaving lenders, AMCs, and homeowners scrambling
  • A thinning mentorship pipeline for new appraisers, weakening the path forward for the next generation
  • These changes, paired with the lack of exit planning, have broader implications. This isn’t an individual issue; it impacts industry stability and continuity.

To read more, Click Here

My comments: Worth reading the entire post for the details and interesting comments.

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Appraisers – The Clipboard Has to Go!

By on May 22, 2026   /   FHA, real estate market, UAD 3.6   /   Leave a comment
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Newz: The Clipboard Has to Go, Systemic Failures in FHA Appraisal and Loan Review

May 22, 2026

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

  • LIA AD: Am I Still on the ‘Do Not Use’ List?
  • Joe the Appraiser: Calling It Like It Is. The Clipboard Has to Go
  • Florida Megamansion That Starred in ‘Scarface’ and Was Used as President Nixon’s Winter White House Hits the Market for $237 Million
  • Systemic Failures in FHA Appraisal and Loan Review by Desiree Mehbod
  • MY AD: List of my articles about UAD 3.6
  • America’s Homes Are Older Than Ever—and Local Red Tape Could Make Them Harder To Fix
  • Survey: While Some Brokers Push Private Listing Networks, Most Soon-to-Be Sellers Want their Homes Seen By Every Buyer
  • MBA: Mortgage applications decreased 2.3 percent from one week earlier

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Joe the Appraiser: Calling It Like It Is.

The Clipboard Has to Go

By Joe Pravettone

Excerpts: I’m Joe. I’ve been doing this a long time. Long enough to remember when “cutting-edge technology” meant a pager, microfiche, and a Thomas Guide rattling around in the glove box. (If you know, you know.)

I’ve spent nearly 30 years in this profession — 15 years in the mortgage world doing processing, underwriting, and operations, and another 15 deep in appraisals, wearing just about every hat there is, from fee appraiser and AMC staff to QC.

Let’s start with the UAD.

If you’ve been in this business longer than five minutes, you’ve felt it. That low-grade tension humming in the background. The new Uniform Appraisal Dataset is here. The forms are changing, the workflow is changing, and a lot of appraisers are somewhere between uneasy and ready to stress-eat.

I get it. I really do.

But here’s the other reality: We’re also heading toward a volume surge. Rates are easing. Refinances are starting to creep back. And when you combine industry-wide change with rising volume, things can get messy.

So let’s be honest about something. The clipboard has to go. I know, I know, you’ve got a system. Your scratch paper has a system. Your clipboard definitely has a system. You’ve been doing it your way for years, and your way works. I’m not saying it doesn’t. But the road has curved, and it’s time to turn the wheel.

To read more, Click Here

My comments:

This article was written by a long time lender appraisal “insider”. Worth reading.

As the November 2, 2026 UAD 3.6 deadline approaches more lenders and appraisers are getting ready. But, many appraisers don’t like the changes. Those that get ready will have lots of work from AMCs, who are looking all over the country now for appraisers who will do UAD 3.6 appraisals for them. GSEs do about 50% of mortgage loans. Lenders who don’t sell their loans to GSEs will be using the forms software you have been using. I am working on an article on how to get business from them.

I remember the “old days” of microfiche, Thomas Brothers Maps. When I first started appraising 50 years ago, I remember filling up my car by peeling off the back of polaroid photos. I still have old Thomas Bros. maps in my car “just in case” my electronic maps don’t work or are inaccurate. I also have some very old microfiche files but don’t have anything to see them on.

I definitely prefer using an inspection app. I will be writing an article on which tablets are required. I will also have an article with paper checklist instructions that go through SFR, condo and 2-4 units UAD 3.6 appraisals.

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