Imagine standing before a beautifully decorated Christmas tree, ready to flip the switch. You plug in the lights and nothing happens. You check the plug, the length of the wire and each bulb, one at a time, until you find that one tiny bulb somewhere along the strand is broken or loose, and its causing the entire string of lights from working.
Similarly, in complex systems, the weakest link often determines how well the system functions or whether the system functions at all. The upcoming mandate for the Uniform Appraisal Dataset 3.6 (UAD 3.6) and the redesigned Uniform Residential Appraisal Report (URAR) is such a system. If any single stakeholder in the mortgage/valuation chain fails to support the standard, the entire “string” of appraisal-to-loan delivery can go dark.
That’s why appraisal software, appraisers, appraisal management companies, lenders and even the GSEs, must all be certified and/or ready to go for UAD 3.6 to work as intended.
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