Defending Adjustments for Appraisers

By on September 4, 2026   /   adjustments, AI, AMCs, appraisal business, GSEs, UAD 3.6   /   Leave a comment
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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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If you are a paid subscriber and did not receive the September 2026 issue emailed on Tuesday September 2, 2026 please email info@appraisaltoday.com, and we will send it 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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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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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
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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
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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
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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     
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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.

To read more, Click Here

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.

Read more!! →

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UAD 3.6: The Appendices

By on June 19, 2026   /   real estate market, UAD 3.6   /   Leave a comment
Tags: ,

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.

Read more!! →

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Creative Appraisal Definitions – Humor

By on June 5, 2026   /   bias, FHA, UAD 3.6   /   Leave a comment
Tags: , , ,

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’

Read more!! →

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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
Tags: , , ,

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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24 Hour Appraisals

By on May 14, 2026   /   appraisal business, appraisal forms, bias   /   Leave a comment
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Newz: 24 Hour Appraisals, Bias Accusation Collapses, Easements and Appraiser Liability

May 15, 2026

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

  • LIA AD: Easements and Appraiser Liability
  • 24-Hour Appraisals: The Future or a Gimmick? By Shawn Telford , Chief Appraiser and Valuation Officer at Cotality
  • $28 Million ‘Pavilion’ House in Los Angeles Boasts ‘Once-in-a-Generation’ Design—and a Sunken Conversation Pit
  • Freddie/Fannie UAD and Forms Redesign: Enhanced Timeline and Updated FAQs
  • MY AD: Appraisal forms software in September, 1993 – a glance at the past
  • AQB Releases White Paper on Experience Requirements
  • Bias Accusation Collapses as HUD Clears the Appraiser by Desiree Mehbod
  • MBA: Mortgage applications increased 1.7 percent from one week earlier

 

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24-Hour Appraisals: The Future or a Gimmick?

By Shawn Telford , Chief Appraiser and Valuation Officer at Cotality,

Rethinking Quality and Risk in Modern Valuations: Why Faster Can be Risky

Excerpts: side from the opinion of value, speed is often the next loudest talking point in any conversation about appraisals—but it’s also one of the most misleading. While accelerated appraisal procurement models promise faster turn times, they do little to address the concerns that matter most to lenders: inaccurate valuations, which lead to appraisal defects that create buyback exposure and margin pressures for lenders, ultimately contributing to delays and additional costs.

This isn’t to say that the prospect of 24-hour appraisals is not appealing: after all, who doesn’t like faster? But is it a game-changer or merely a gimmick?

Today, lenders are facing greater scrutiny from the GSEs and investors over loan quality, in general, and collateral valuations in particular. Recently, Fannie Mae reported that collateral defects – like property damage, appraisal condition & quality rating inflation, and inappropriate comparable sale selection—are now accounting for nearly half of discretionary loan review defects. Solving for the Right Problems

Pressuring appraisers to work faster is hardly going to address these issues.

The Economic Impact of Quality

Getting an appraisal quickly can be a plus. But if the valuation requires extensive rework, it can create friction and delays and add operational costs to the underwriting process. One of the biggest slowdowns in the appraisal process is the back-and-forth between the appraiser and an AMC’s lender over administrative “corrections” that often don’t affect the opinion of value. In fact, recent Cotality data shows that nearly half of all appraisals are returned for some type of correction, and the vast majority of those returned do not have their value changed when resubmitted.

To read more, Click Here

My comments: very good analysis with many excellent comments. Very knowledgeable author. Worth reading.

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The Appraiser Exodus and How to Fix It

By on May 8, 2026   /   appraisal business, appraisal how to, Appraisal Institute, UAD 3.6   /   Leave a comment
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Newz: Expanded Intended Users?

The Appraiser Exodus and How to Fix It.

May 8, 2026

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

  • LIA AD: Expanding Intended Users? Not So Fast
  • Under Pressure: What’s Driving the Appraiser Exodus and How to Fix It, By David Massey
  • Historic Tudor Estate With English Gardens and Prairie Views Is Listed for $4.7 Million Near Chicago
  • What is a Pre-listing appraisal? Written for Home Owners But Has Good Tips for Appraisers, By Tom Horn
  • MY AD: What Happened When Government Decided That Appraisers Needed Protection, By Cindy Chance, PhD
  • How to See the Potential in Homes That Don’t Look Perfect. Written for Home Owners But Has Good Tips for appraisers
  • More Than 60% of America Is Covered by Drought and Millions of Homes Are at Risk
  • UAD 3.6 Bootcamp, LIVE in Chicago, IL and on Zoom, Wednesday – Friday, May 13th-15th
  • MBA STATS: Mortgage applications decreased 4.4 percent from one week earlier

 

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Under Pressure: What’s Driving the Appraiser Exodus and How to Fix It,

By David Massey

Ask any veteran appraiser or physician what has changed most over the past twenty years, and the answer is usually the same: paperwork.

Professions once centered on skill, judgment, and service are now dominated by portals, compliance layers, and third-party control. Burnout rises, independence falls, and a quiet exodus follows.

The American Medical Association reports that physicians now spend nearly two hours on documentation for every hour of patient care.

The appraisal profession is now well into that cycle.

According to the Appraisal Institute’s 2023 Fact Sheet, the number of practicing appraisers in the United States has declined by roughly 8,000 in recent years. The Conference of State Bank Supervisors shows a longer-term drop from about 120,000 appraisers in 2008 to fewer than 96,000 by 2017, a 21 percent decline in less than a decade. IBISWorld reports another six percent employment drop between 2018 and 2023. The U.S. Bureau of Labor Statistics projects only modest growth through 2034, far short of what is needed to replace retirees.

The pipeline is shrinking while demand remains steady.

The National Association of Realtors ® 2023 Appraisal Survey found that more than half of appraisers are now asked monthly, or more often, to complete assignments outside their normal geographic or property-type expertise. More telling, 54 percent cited Appraisal Management Companies as the single greatest challenge to their business. That statistic alone explains much of what has gone wrong.

When I started in this profession, appraisal centered on analysis, interpretation, and professional opinion. I studied neighborhoods, walked properties, and applied experience to market behavior. Today, much of the job revolves around compliance portals, redundant uploads, and layers of review by people who have never inspected a property.

AMCs were created after the 2008 crisis to protect appraiser independence. The idea made sense. The execution has failed. Today, borrowers commonly pay $600 to $700 for an appraisal, while the appraiser often receives about half of that after AMC fees. Turn times lengthen. Panel depth shrinks. Geographic competency erodes. And experienced appraisers quietly step away.

What was meant to reduce pressure has become a system of control. Communication between lenders and appraisers is filtered. Pricing is dictated by algorithms. Scope interpretations are issued by third parties removed from the field. Judgment is slowly replaced by checklist compliance.

Healthcare has already traveled this road.

A 2025 Annals of Internal Medicine study showed nearly five percent of U.S. physicians left clinical practice in a single year, driven largely by burnout and administrative burden. The American Medical Association reports that physicians now spend nearly two hours on documentation for every hour of patient care.

Appraisers now operate inside the same imbalance. More time formatting reports than analyzing markets. More time satisfying review protocols than developing defensible opinions. Judgment yields to process.

This is not a workforce inconvenience. It is a structural market risk.

The fix is not complicated, but it does require courage.

First, appraisal fee transparency must be mandatory. If a borrower pays $650 and the appraiser receives $325, both parties deserve to know. Transparency restores accountability and allows market forces to function.

To read more, Click Here

My comments: Worth reading, especially how to fix it. We all know what is happening to residential lender appraisers.

For doctors, corporate medicine has taken over. For example, primary care physicians are allowed only 15 minute visits with patients. Large insurance companies make it very difficult for patients to get the care they need by denying what the patient needs. Doctors don’t like it, plus the excessive paperwork.

I play pickleball with a retired doctor. He had to sell his medical practice as he was underbid on fees by large health insurance companies.

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