Great summary. The lesson of the story; Bureaucrats are in control. How many of those policy changes actually benefited the regular citizen? You are observing political theater which never ends.

We should demand better compliance with states administrative procedural rules. Recently I read the state of Colorado’s administrative procedural rules, inspired by Mr Bagott’s efforts.
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(c) If any agency incorporates or proposes to incorporate any material by reference in a rule and the version or edition of the material to be incorporated has not previously been provided to the state publications depository and distribution center, and if the rule or proposed rule does not identify where the incorporated material is available to the public on the internet at no cost, then the agency shall provide one copy of the material in either paper or electronic format to the state publications depository and distribution center. The state librarian shall retain the copy of the material and shall make the copy available to the public.
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Then why are Colorado appraisers forced to buy the uspap book every two years to retain our appraisers licenses? The publication is supposed to be available free of charge, to include updated editions. Look up the legal definition of extortion.

The lesson here is that the expansion to automated tools is happening because of the obfuscation of what should have been transparent and readily available appraisal industry guidelines and practices. When nobody knows what you’re doing behind a black curtain, one can be accused of anything, manipulated to no end. Stake holders agree. Appraisal modernization.

born and raised by those who praise appraiser control…

Mmm, maybe. We are paid to collect, analyze, and report to our clients. Our work belongs to them, not us.

i do not need history lessons…i lived through it…but keep on standardizing the mailing address

Dave, in October 2016, prior to the 2016 presidential election and the Trump administration, Fannie Mae and Freddie Mac announced new initiatives that included appraisal waivers. Fannie Mae referred to this as the Enhanced Property Inspection Waiver (PIW), while Freddie Mac called it the Automated Collateral Evaluation (ACE).

https://www.thewbkfirm.com/industry/fannie-mae-and-freddie-mac-announce-new-initiatives-for-mortgage-origination-process

Hi there Dave. We’re probably in more agreement with each other then not. Specifically I was trying to provide summary technical explanations for the primary articles complex subject matter; (article quote) ‘Fannie Mae and Freddie Mac have been waiving home appraisals in favor of computer models.’

For political activity influencing the appraisal industry, ongoing through multiple administrations over a long period of time. I wrote up this post previously at the request of another poster, a summary of FRB activity since DF was implemented, w/ links.
https://appraisersblogs.com/lack-of-fee-transparency-exposing-the-amc-exploitation/#comment-43166

Also relevant; Previous research efforts from multiple appraisers resulted in new discoveries regarding the structure and form of ‘predictive modeling’. Scroll down and read the collectivist human stereotypes applied to borrower and behavior. The various technical utilities which are replacing human appraisers have similar modeling. Now, back to the regularly scheduled program of blaming everything on appraisers.
https://patents.google.com/patent/US8775300B2/en?q=(~patent%2fUS20160078573A1)

The waivers first started because of Covid. Trump was President when Covid started. That’s also when desktops and hybrids got going. The rationalization was that appraisers couldn’t do inspections because of Covid. They also said there weren’t enough appraisers so there was allegedly a backlog so waivers were needed. The current rationalization is appraiser bias. “We need waivers, value acceptance because all appraisers are biased.” The real goal is to get the appraiser out of the equation so lenders, mortgage brokers can make more money more quickly with no checks and balances.

Sounds like someone is in dire need of a history lesson.

More disruptive, more painful AND more often.

I’m taking my last CE this month. I’m not even sure I’ll finish it. Won’t be doing it again for numerous reasons as are many of you. Just getting too old to tolerate this Nanny State mentality.

Now, that’s funny. Thanks for the laugh.

They’ll never get the artificial non-intelligence algorithms right. Because people with biased motivations code the system parameters. Explaining to the laymen or devout believers alike why mass data analysis and market regression data extrapolation does not function well is complicated and not worth the effort for every important detail. To summarize; the fault of the approach is too much data from categorically dis similar and distant housing stock, which creates too broad of potential adjustment factor differentials, leaving far more room for human and automatic system error during the data interpretation phase, in such an overly convoluted complex process. Scatter charts… Data cancer; defined. They’re moving too fast with too much data. Misleading data output is the result.

Manual traditional appraisal process; logically sorting a smaller sampling of more narrowly similar and local recent sales, dealing with rational limitations to incorporated data analysis which is based on limited modalities, brings more logical and credible results. Requiring fewer market adjustments, providing less room for human or automated process error. The solution? Distributed proportional allotment. The amount of potential adjustments that need distributed as indicated by the ranges of the local market, and only the local market. The closer your comps are, the fewer the adjustments required, the narrower the range. The fault of mass data analysts is turning the adjustment process into a fixed science. They mechanically adjust more or less adjustments then appropriate because the mass data analysis chart outputs indicated irrational ranges. Increasing the probability of systemic process errors for all who utilize automated mass data extraction technology.

They’re doing it wrong. The real world parsed and local data provides a better rational basis to define benchmarks to value. That is where fraud and accidental over or under valuation comes from, because there is too much data being interpreted and subsequently too much room for error. Couple that with institutional investors forecasting and adjusting the black box avm tech to indicate profitability, to favor the invested class, the housing bubble is truly epic.