condition rating - Appraisers Blogs

New UAD Overhaul: What Appraisers Can Expect in 2025 & Beyond

Dave Towne — Thu, 19 Sep 2024 12:30:42 +0000

Folks, I recently attended a Train the Trainer 1.5 day class about the new UAD/URAR, jointly facilitated by Fannie Mae, Freddie Mac and Aloft. About 20 other instructors from across the US were also present. This class is required before this new UAD material can be taught to other appraisers, under contract with the GSEs. My info below is a limited high-level summary for the new UAD and URAR of what was presented, and what the appraiser community can expect to see, from now into 2026. It is not meant to be comprehensive; I may send out other info as...

New URAR Redesign Spec Released The Appraisal Forms & UAD Redesign Spec has been released and the current forms are being retired. This means that…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Fannie & Freddie’s AI Appraisal Photo Recognition

AppraisersBlogs — Tue, 07 May 2024 12:30:58 +0000

A colleague recently shared an important heads up regarding Fannie Mae and Freddie Mac’s plans to implement photo recognition AI to analyze appraisal photos. This technology can scan a single photo and extract over 100 data points related to quality, condition, and repairs. For example, it can identify flooring types, appliance models, and even assess light levels in a room. Later this year, the GSEs plan to run all appraisal reports through this AI and cross-check the appraiser’s stated quality and condition ratings. If the AI’s analysis differs significantly from the appraiser’s, it will automatically generate a complaint letter to...

Pushing Automation to Replace Appraisers Regulators today are often removing barriers to responsible behavior with the hope of expanding lending activity since falling mortgage rates…
Let's All Build the Gallows Together Fannie Mae and Freddie Mac have issued a clarion call to all appraisers to pitch in and help build the…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…

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Appraisers, did you Shoot yourself in the Foot?

Richard Hagar, SRA — Mon, 30 Sep 2019 12:30:23 +0000

When I explain the rules many of the appraisers start complaining: “An MLS photograph depicts the house at the time it sold so it’s more accurate than my photograph would be”… There’s a lot of yelling and screaming about bifurcated appraisals. Unfortunately, appraisers may have shot themselves in the foot when it comes to this issue. Allow me to provide an analogy to help explain the issue. I’m not sure if this happens in other areas of the country but in Seattle there is a strange “left leaning” way they do things: State and Federal governments perform numerous traffic studies, to...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Failure to Communicate

Frederick E Rossiter — Mon, 12 Aug 2019 12:30:11 +0000

Realtor’s language is “local” whereas an appraiser’s language is universal… What we got here is … failure to communicate. It’s a line from Cool Hand Luke … a great old movie with Paul Newman. Newman played a prisoner in a jail in the Deep South. The story was all about Luke Jackson, played by Newman, who was sentenced to two years in a Florida prison farm. Well, Luke was a free spirit who didn’t play by the rules and this angered the prison’s sadistic warden. In one memorable scene, the warden said, “What we’ve got here is … failure to communicate“. That line was...

First the Borrower Fee. Now the Appraiser… Two lawsuits place Class Valuation’s fee transparency and staff-appraiser compensation practices under federal scrutiny. Most appraisal disputes examine only one…
FNMA Ensnares Appraisers in Farcical Probes You feel like Fannie Mae is simply trying to get rid of appraisers. A lot of appraisers feel that way...…
Top DEI Bosses Have a Problem - Diversity The ranks of the new DEI bosses at the financial institutions are no more diverse than the appraisers their institutions…

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Hybrid Inspectors Offering Appraisal Opinions

Mark Skapinetz — Mon, 17 Jun 2019 12:30:03 +0000

Clear Capital admission: This is an admission that inspector were previously offering appraisal opinions re Q&C. There remain many other areas in hybrids that also are appraisal opinion being provided by non appraisers. I have written many blog posts here, mainly for the consumer to read and understand what is actually happening in the world of Real Estate Valuations. My blogs range from being overcharged for appraisals so the middle man (the appraisal management company or AMC) can make money, lenders still pressuring appraisers to hit a value, and now having untrained and unlicensed people perform inspections (see my last...

First Impressions of Clear Capital’s AVM An Appraiser’s First Impressions of Clear Capital’s AVM... It’s no secret the lending industry is aggressively pursuing alternatives to traditional…
Appraiser Imposters! AMC sends a "non-appraiser" to photograph, measure, sketch, and observe a property, it’s quality, condition, and surroundings instead of using…
What IS a “ClearVal Appraisal”? Clear Capital ClearVal... Value Not So ClearCut... I’ve finally had an opportunity to read a hybrid ‘appraisal’ start to finish.…

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Is SmartExchange Not USPAP-Compliant?

Guest Author — Wed, 30 Jan 2019 13:30:58 +0000

Is Smartexchange Resulting in USPAP Non-Compliance? This blog is likely going to stir up controversy. It is likely going to have a few folks calling me a loyalist to a la mode, or other similar things. Am I a loyalist? I do not see myself as such, but a la mode has been the only software that I have used in my career for residential form reporting. I do use ACI in the corporate setting as a reviewer and manager in my firm. I like and consider many of the staff at a la mode to be my friends, and I have had long relationships...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Automatic Review of Photos in Appraisal Reports It means the statements in your appraisal reports about the actual component material, and its quality and current condition, can…

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Is Smart Exchange Really a Smart Idea?

Guest Author — Wed, 03 Oct 2018 12:30:30 +0000

Alamode recently launched Smart Exchange to its users. The idea is appraisers can see what others have stated as property characteristics and transfer that information directly into your report. The system is based on mutual sharing, so if you participate, you will share all your comparable data with everyone else that is using Smart Exchange and you can see their data. The last update from alamode installed the programming and changed the way the side by side screen looks. Now I must make a disclaimer here, I am in the over 50 category and my kids are all grown. It...

Appraisers Ditch a la mode In 2015, Dave Biggers of a la mode stated: I'll wrap up by wishing you a happy new year, in…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
Bias and Discrimination in Reports, Yes or No? Appraisers, should we include discussion of B&D in our reports? Wait, What?? Bondage and Discipline? No, not that. Bias and Discrimination.…

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Schizophrenic Adjustments

Dave Towne — Wed, 22 Aug 2018 12:30:20 +0000

Appraisers, I’ve written in the past about what I believe are strange ways to report adjustments in appraisals, and suggested ‘rounding’ is a perfectly acceptable way to report them. This is largely due to buyers and listing agents thinking and listing in $100 increments – not down to exact dollar amounts. During the past couple of weeks, I ‘came in contact with’ two separate appraisals done by different appraisers on totally different properties, in different market areas. What struck me was the incredibly precise adjustments made for only certain items in these reports, while the rest of adjustments were ‘rounded’ to...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
GLA Adjustment: Adjusting Full Difference vs a… Appraisers, on Thursday, before the Memorial Day holiday, I circulated across the US an email asking for response to a…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…

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Rating Number Game Threatening Appraiser Independence

Dave Towne — Mon, 06 Feb 2017 13:30:02 +0000

CU rating number magically moved lower on the scale… Appraisers, While it’s presently a tad bit slow for order volume, this is a good time to evaluate a potentially troubling item instituted by Fannie Mae in conjunction with their Collateral Underwriter (CU) review process for appraisal reports. This has the ability to be abused by lenders and AMC’s. Hope you will take time to peruse this message and the podcasts. Unfortunately, we need to get a bit deep into the weeds here so that you get a grasp on potential challenges some ‘intended users’ may have with your reports. I...

Comparable Selection Manipulated to Produce Lower CU… Appraisers harassed to use sales not comparable to lower CU risk score... Readers that have followed my past Collateral Underwriter…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…

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Comparable Selection Manipulated to Produce Lower CU Risk Score

Michael Ford — Thu, 02 Feb 2017 13:30:19 +0000

Appraisers harassed to use sales not comparable to lower CU risk score… Readers that have followed my past Collateral Underwriter (CU) articles already know my opinion of it. It was flawed system design starting with its underlying database. Designed by seven people that did not have a valid appraisal license between them! Setting aside the basic database flaw in CU, it was and is a system that’s highly susceptible to manipulation. The CU scoring parameters can be modified at the lender-user end. Even if that were not possible, it is still subject to manipulation. As Phil Crawford points out, FNMA first...

Collateral Underwriter, What’s Under the Hood? Collateral Underwriter - Garbage In, Garbage Out (GIGO) FNMA has a fascination for first patenting garbage, & then implementing it…
Dreaded FNMA Letter RE Condition Ratings Certified Letter From Fannie Mae Regarding Condition Ratings And then it happens, the moment we all know is coming -…
Collateral Underwriter Crumbles CU Robot Keeps Score on Appraisers Appraisers, No, this is not about “cuukie” crumbles. It’s about what the Fannie Mae…

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UAD Rating Absolute vs. Relative

Dave Towne — Mon, 26 Sep 2016 12:30:23 +0000

Where did those rating words come from? Why is it so many appraisers have trouble with UAD and the CU (Collateral Underwriter), and how to apply the Quality and Condition rating between the Subject and Comps? Not long after the UAD was implemented/mandated by FNMA (in 2011), and then the CU evaluation system came along, FNMA began discovering that many appraisers were improperly Rating the comps Quality and Condition AGAINST the Subject in the grid. And they began telling appraisers what they were finding. FNMA also discovered, and revealed, that many appraisers were using the same Comps over and over...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The Illogical Reality of Mortgage Appraisal Reviews Reforming the appraisal review process is essential to maintaining the integrity of the real estate market and protecting consumers and…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

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GLA Adjustments & Pizza Slices – They Do Correlate!

Dave Towne — Thu, 04 Aug 2016 12:30:47 +0000

Determining the GLA Adjustment in Appraisal Reports I promised in a previous post I’d send out my method for determining the GLA adjustment in appraisal reports. Goodness! Appraisers actually found that statement buried in the prior post, and have ‘rung my chimes’ requesting this info! OK, but first, the pizza analogy. I often tell clients and other appraisers that appraising (residential) real estate is far more complex than grabbing a store-bought pre-boxed pizza (that has exactly the same ingredients from box to box no matter which store you shop in) at a grocery and then applying 425 degrees of love...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…

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Appraiser’s Response to LRES Order Blast

Michael Ford — Mon, 25 Jul 2016 12:30:17 +0000

LRES Standard Interior Appraisal Request? Your special requirements and micromanagement of the appraisal process dictate that I charge a fee commensurate with the additional, but typically unnecessary work needed to produce credible results. You are the potential client (agent), so that that is your prerogative and it would be my pleasure to accommodate you as long as appropriate compensation is provided. Respectfully, there is little about your appraisal request that is “standard”. Please explain briefly what you consider to be a ‘standard interior appraisal’. That definition does not appear in The Appraisal Institute’s Dictionary of Real Estate Appraisal. To be...

AMCs Bidding Game An appraiser's response to AMCs bidding system. Recently, we came across an interesting story and thought it's something fruitful that…
Requests from Lenders with Specific Statements Lenders' Requests, C&R Fees, Email Blasts, SOW, Unlicensed AMCs and more... What is the best way to ensure you receive…
Appraisers and Their Lack of Fees I feel it’s only prudent to put my ten cents, or more, in on the subject of actual cost, versus…

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Collateral Underwriter Crumbles

Dave Towne — Wed, 13 Jul 2016 12:30:28 +0000

CU Robot Keeps Score on Appraisers Appraisers, No, this is not about “cuukie” crumbles. It’s about what the Fannie Mae Collateral Underwriter (CU) process is finding in far too many appraisal reports. A few days ago, I had an opportunity to speak with someone on the ‘inside’ of Fannie Mae. The discussion evolved to “what are the most serious items the CU process is finding in appraisals?” The CU process, which became effective January 26, 2015, is a giant electronic robot collecting tons of specific data from submitted appraisals to FNMA. This data can then be tied directly to the...

The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Fannie Wants to Script Conclusions of Outside… Government-sponsored mortgage giant Fannie Mae is essentially forcing banks to repurchase any loan it wants if [the appraiser] refuses to…
Dear Representative, FNMA Has Gone Rogue! Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending…

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Dreaded FNMA Letter RE Condition Ratings

Guest Author — Wed, 07 Oct 2015 12:30:33 +0000

Certified Letter From Fannie Mae Regarding Condition Ratings And then it happens, the moment we all know is coming – the dreaded certified letter from Fannie Mae. My door bell rings and the mailman is standing on my porch with pen in hand. Now don’t get me wrong, we have all been warned. They have the super computer comparing all of us and if you are the outlier you’re getting notified! If a majority of Appraisers give a specific house a certain rating and you disagree, you must be wrong – BOOM – letter. I assume this is the case as I...

Other Appraisers Peer Reports Now Appraisers Must Conform to the Opinions of Other Appraisers/Unknown Persons of Unknown Competence! Appraisers, Many of you know I…
It's Not a Comp, It's a Sale; Stop Fannie Mae Lies! It is merely a SALE...Appraisers, Something’s been gnawing at my craw ever since January when FNMA’s wonderful Collateral Underwriter (CU)…
CU "Enhancements" Are Coming CU risk score, flags and messages Appraisers, In about 6 weeks, Fannie Mae will make available to LENDERS only, and…

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condition rating - Appraisers Blogs

New UAD Overhaul: What Appraisers Can Expect in 2025 & Beyond

Related Posts:

Fannie & Freddie’s AI Appraisal Photo Recognition

Related Posts:

Appraisers, did you Shoot yourself in the Foot?

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Failure to Communicate

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Hybrid Inspectors Offering Appraisal Opinions

Related Posts:

Is SmartExchange Not USPAP-Compliant?

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Is Smart Exchange Really a Smart Idea?

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Schizophrenic Adjustments

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Rating Number Game Threatening Appraiser Independence

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Comparable Selection Manipulated to Produce Lower CU Risk Score

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UAD Rating Absolute vs. Relative

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GLA Adjustments & Pizza Slices – They Do Correlate!

Related Posts:

Appraiser’s Response to LRES Order Blast

Related Posts:

Collateral Underwriter Crumbles

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Dreaded FNMA Letter RE Condition Ratings

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