President's Message
Strengthening Our Partnership with VA Leadership
On Wednesday, July 29, I joined Director of Government Affairs Scott DiBiasio and Senior Manager of Federal Affairs Brian Rodgers for an in-person meeting with Patrick Zondervan, executive director of the Department of Veterans Affairs Loan Guaranty Service, and members of his leadership team, including VA Chief Appraiser James Heaslet. We discussed appraisal policy, the VA Home Loan Program and opportunities for continued collaboration.
We introduced the Appraisal Institute to the VA’s new leadership, reaffirmed our commitment to supporting veterans through credible, independent valuations and established an ongoing dialogue on issues affecting the appraisal profession. We also offered to help the VA communicate its need for qualified appraisers to join the VA appraisal panel, particularly in underserved markets.
We expressed strong support for the VA’s existing appraiser panel structure, including the Tidewater Initiative. We also explored ways the VA could maintain an adequate panel of qualified appraisers in rural areas, where limited appraiser availability can create assignment challenges and longer turnaround times.
We discussed recent positive changes to VA appraisal fee schedules and Minimum Property Requirements, along with appraisal modernization and the administration’s executive order on mortgage lending. Our conversation demonstrated our shared commitment to maintaining a strong, independent appraisal process while ensuring veterans receive timely access to their earned home loan benefits.
Helping the Industry Prepare for UAD 3.6
The appraisal profession and the broader real estate industry face one of the most significant residential reporting changes in decades. The November transition to UAD 3.6 approaches, and GSE officials have indicated they have no plans to adjust the implementation date, so lenders, appraisers, brokers, agents and other stakeholders must understand the changes ahead of time and help clients navigate them.
As part of our UAD 3.6 readiness campaign, I joined Maureen Sweeney, SRA, AI-RRS for Kaplan Real Estate Education’s July 22 RealXperts webinar, “Are You Ready for the Changes Taking Place in November?” The public webinar covered the redesigned Uniform Residential Appraisal Report and the new data-driven UAD 3.6 standard, which will become mandatory for all GSE-backed residential lending in November.
More than 300 registrants received a practical look at appraisal reports that will become more dynamic, data-focused and consistent across property types. Maureen and I outlined how the new reporting structure will change the presentation of appraisal information, why the transition matters across the mortgage and real estate ecosystem, and how industry participants can set expectations with clients and consumers.
The webinar drew a range of questions about the new form, showing how closely real estate professionals are watching the transition. Participants responded positively to the new summary sheet and the ability to find the market value opinion quickly. Kaplan now offers the recording to the public at no cost. I encourage appraisers, lenders, brokers, agents and others who work with residential appraisal reports to watch it as part of their UAD 3.6 readiness efforts.
The Appraisal Institute used the webinar as one part of a wider industry-readiness effort through education, outreach and collaboration. I also recently wrote for MBA NewsLink about why lenders should treat UAD 3.6 as an operational transformation, not simply a forms change. Together, these efforts reinforce our commitment to help appraisers, lenders, brokers, agents and other stakeholders prepare for a smooth transition.
We are also expanding readiness resources. Our “Countdown to UAD 3.6 — Will You Be Ready?” webinar series launched June 30, and our URAR companion courses go deeper on appraisal workflow, methods, techniques and reporting expectations under the new framework. I encourage members, lenders, collateral review teams, AMCs and others who rely on residential appraisal reports to use these resources now.
3Q Region Meetings Focus on Finance, Education and Membership.
Hundreds of chapter leaders joined the executive officers in 10 virtual sessions over the last few weeks for the Appraisal Institute’s recent 3rd Quarter Region Meetings. These meetings provided an important opportunity to share a candid update on the state of the organization, with a particular focus on finance, education and membership.
On finance, the message was direct: AI remains well reserved and carries no external long-term debt, but recurring operating deficits and reserve drawdowns require disciplined action. Through May 2026, total revenue was up 7.2% year over year to $6.84 million, while expenses increased 3.9% to $7.99 million. The resulting year-to-date deficit of $1.15 million was narrower than last year’s pace, and April and May both closed with positive net results. That progress shows the organization is beginning to turn the corner, but continued execution and careful budget discipline remain essential.
Education continues to be one of the strongest areas of momentum. Year-to-date education revenue reached $2.23 million, up 21% from the prior year, with qualifying education up 38% and designation education up 24%. PAREA revenue reached $484,000, more than three times the prior-year level, and the new Valuation Bias and Fair Housing course generated $179,000 from a standing start. These results support continued investment in fresh content, including UAD 3.6 readiness resources, AI on AI Season 2, upcoming course premieres and new instructor training.
Membership remains a central priority. The organization continues to face long-term, profession-wide demographic pressure, including a decline in the active appraiser population and a smaller dues-paying base than in prior years. At the same time, student affiliates represent an important pipeline opportunity, and we’re focusing on converting students to candidates and ultimately designated members. Member value also remains a major focus, including the Find an Appraiser refresh, new technology partnerships, discounted membership opportunities for those completing our qualifying education, and expanded benefits to support our members.
Taken together, the updates reflect an organization working from a position of strength while addressing real challenges with transparency and discipline. The path forward depends on sustained revenue growth, continued education innovation, stronger member engagement and a clear focus on delivering practical value to members, chapters and the valuation profession.
Leadership Resource Registry
As we look ahead to another year of volunteer leadership, I encourage you to consider how you can get involved. The 2027 committee appointment process is now underway, and the Leadership Resource Registry (LRR) is open for members interested in national volunteer service. Whether you're volunteering for the first time or seeking reappointment, now is the time to complete or update the LRR. Visit the Leadership Resource Registry to learn more and submit or update the LRR by September 16. As the Appraisal Institute continues to evaluate its governance structure, some volunteer opportunities may evolve. We encourage members to complete the LRR based on their interests, knowing that we will communicate any changes as the appointment process moves forward.
Upcoming Board of Directors Meeting
The Board of Directors will meet in Chicago on August 13 and 14 for its regularly scheduled 3rd Quarter board meetings, with a full agenda that includes vice president and committee elections as well as continued discussion of governance changes. Those governance topics include board size, board composition, length of director terms, director qualifications and elections. The Task Force, which has been in place since May 2025 and whose scope expanded in November, has focused on these and related matters throughout the year. I also called a special board meeting on July 31 so directors could fully understand the recommendations and proposals from outside counsel and the Task Force, and so the Task Force could receive additional input. Now is the time to finalize these items, report them to membership, gather broader feedback and allow the Board to assess that input. Please tune in to the Board “report out” on August 20 and watch future President’s Messages for updates on the progress made on these matters.
Enjoy the remaining days of summer!
Michael J. Acquaro-Mignogna, MAI, SRA, AI-GRS
President
Appraisal Institute