What Trump’s Order to Modernize Appraisals Will Mean for Housing

Why It Matters

By legitimizing AI‑driven valuations and easing appraisal rules, the order can speed loan approvals, lower costs for borrowers, and help the mortgage industry meet future demand with a modernized workforce.

Key Takeaways

• Executive order pushes AI and alternative valuation models in housing.
• Low‑LTV loans may qualify for reduced appraisal regulations and automation.
• Industry already piloted hybrid appraisals; adoption accelerating post‑order.
• Lender pipelines urged to test UAD 3.6 and new data standards.
• Modernization aims to cut borrower wait times and expand appraiser workforce.

Summary

The Trump administration issued an executive order targeting appraisal modernization, explicitly calling for broader use of artificial intelligence, alternative valuation models, and reduced regulatory burdens for low‑LTV transactions. The directive builds on years of industry pilots that introduced automated valuation models (AVMs), hybrid appraisals, and mobile data collection, signaling federal endorsement of these technologies.

Key points include encouragement of AI‑driven machine‑learning and large‑language‑model tools, permission for automated processes on loans with lower loan‑to‑value ratios, and a push for lenders to adopt the upcoming UAD 3.6 data standard. Kenan Chen noted a roughly 10% decline in traditional appraisals as inspection‑based waivers rise, and highlighted that many lenders are still testing hybrid workflows introduced years earlier.

Chen emphasized that “the trains already left the station,” noting that the industry’s existing pilots—such as Fannie‑Freddie‑compatible ACE plus PDR products—are now reflected in policy. He also warned that while the order lacks specific timelines, agencies have 120‑day reporting mandates, and the real work lies in integrating new data standards and AI tools across both GSE and community‑bank portfolios.

The order’s significance lies in prompting lenders to accelerate technology adoption, which could shorten appraisal turnaround times, reduce borrower stress, and expand the appraiser talent pool. For the broader mortgage market, it promises greater efficiency, lower costs, and a more resilient valuation ecosystem as loan volumes fluctuate.

Original Description

On today’s episode, Editor in Chief Sarah Wheeler talks with Kenon Chen, EVP of Strategy and Growth at Clear Capital, about Trump’s executive order on appraisal modernization on top of the UAD changes.

Related to this episode:

Trump executive orders target housing supply and mortgage credit

https://www.housingwire.com/articles/trump-orders-housing-mortgage-credit/

To learn more about Trust & Will visit trustandwill.com