One veteran appraiser lets brokers know what to consider when deciding on an appraisal waiver for a property
Technology has entered all parts of the mortgage process, and appraisals are no different. Appraisal waivers have been using data to estimate a property’s value for years. Now, with the onset of AI, the hope is that the process will continue to get more accurate.
However, that doesn’t mean that automated appraisals are going to replace appraisers. Dan Figurski (pictured top), chief appraiser at SingleSource Property Solutions, said they have been reassured by Fannie Mae and Freddie Mac that there will always be a place for the human appraiser.
“From a labor perspective, I'm not sure what that looks like in the future, because the GSEs made it very clear at the Val Expo that appraisers are still needed,” Figurski told Mortgage Professional America. “I think they have a ton of data. They have years of data. Then the biggest question on everyone's mind is, is there a need for us? And then there's AI coming into play. So the waiver piece of it, I'm not sure about what that future looks like, or if that's going to change.”
Even as AI increases in use and accuracy, there will still be parts of the appraisal process that require a person to make a judgment.
“Appraisal waivers have increased from where it was in the past,” Figurski said. “I don't know what that looks like in the future, and I wish I could say what that looks like. I know the one thing that was really reassuring is that there is a need for appraisals. Look at the physical aspects of the property, and then that's where the human element still comes into play. It's still needed.”
Using AI to your advantage
Even though Figurski stresses the ongoing importance for human appraisers, it doesn’t mean that he doesn’t also advocate for brokers, appraisers, and lenders to use the technology available to help them in the valuation process.
“It's an incredibly useful tool,” he said. “Some of the analyses that can be done, like performing appraisal, perspective, and market analysis. You can dive in, and it can do analysis quickly. You can reduce your time doing analysis. It can be cut in half or more.”
While the technology can do amazing things to support the appraisal process, Figurski believes the industry is just in the beginning stages of seeing what AI can do for them.
“The nice thing is that, knowing that GSEs still need that human touch,” Figurski said. “They still need our analysis as appraisers to really look at. It is a great tool. I think that we're just diving into that. We're scratching the surface on its potential. But there is still a need for the human element as well.”
Check the numbers
Appraisals have been in the news lately, as a recent report showed nearly one in four homeowners who challenge an appraisal ended up winning a higher evaluation, according to Dwellworks, a relocation firm.
The Trump administration recently rolled back rules from the Biden administration that allowed for easier challenges to low valuations. However, the report said many large banks are keeping those borrower-friendly processes in place, allowing for those reviews to continue.
Figurski said that brokers and lenders must make sure that when they receive a valuation, either produced by AI or by an appraiser, the values make sense. This is especially important for brokers working with portfolio lenders who aren’t selling these loans on the secondary market.
Damon Germanides of Insignia Mortgage taps portfolio lenders—community banks, credit unions, jumbo loans and private-bank relationships—to beat mid-six agency pricing.https://t.co/S30EZ2ipJZ
— Mortgage Professional America Magazine (@MPAMagazineUS) September 5, 2025
“I would say that's the same for lenders, that they have to verify what's being transcribed to them or given to them through the AI system, because that's incredibly important that you, from a confidence perspective, and from a lender perspective,” Figurski said. “They’re assuming something in the bank's portfolio, or lender's portfolio, that could impact the viability of the company, and it's going to impact overall portfolio risk.”
He also stresses to appraisers to use all the tools at their disposal, but not to discount their gut feelings when it comes to the final outputs given.
“You want to use it to your advantage, but double check and verify everything that it's giving you,” he said. ‘It will help, but you don't want to rely solely on it. You still want to use all the data sources to your advantage and give you that level of confidence where you can say, ‘I actually made the same decisions as what the output was in AI. And then I came to this conclusion with X, Y and Z.’ You've got that much more confidence in your decision.”
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