Garbage Replacing Appraisers?

AppraisersBlogs

AppraisersBlogs

AppraisersBlogs Team at AppraisersBlogs
Have questions or need help? Please contact us with any comments, questions or concerns.
AppraisersBlogs

Latest posts by AppraisersBlogs (see all)

Clarocity Multi Million Dollar Garbage Technology vs. Appraisers

If appraisers were to embrace such garbage, would the demise of this technology be sooner? …14.53 million dollar loss in 2017…

Hey Clarocity, Give it up. It is time to face the facts!

From Clarocity Public Financial Statements:

14.53 million dollar loss in 2017
9.49 million dollar loss in 2016
13.00 million dollar loss in 2015
5.43 million dollar loss in 2014
6.82 Million dollar loss 2013
4.95 million dollar loss in 2012
0.36 million dollar loss in 2011
1.19 million dollar loss in 2010
0.86 million dollar loss in 2009
44.8 million dollar loss in 2008

The 2017 Clarocity’s Annual. Report casts doubt on their survival:

“The Company has insufficient cash resources to meet its short-term commitments. Financing from debt and equity, as well as the forbearance of current creditors, is required for the Company to continue operations.”

Even Clarocity shareholders are saying it is time to give it up. Read what they are saying here.

Even stealing appraisal data, they cannot make a profit…

From MarketWatch:

“Clarocity Corp. engages in the development of an appraiser backed valuation database for virtually every residential property for cities, using a proprietary GeoScore property rating system. It licenses its technology and proprietary process to large appraisal organizations that manage appraisers across various cities in the country and offers its products through its subsidiary: Zone Data Systems LLC. The company was founded by Bradley Stinson on February 20, 2004 and is headquartered in Calgary, Canada.”

Now take a look at all the debt Clarocity has repaid in shares of stock in lieu of cash payments. It is a routine process for them, without any hesitation.

And here is what Clarocity adds to the bottom of their press releases:

About Clarocity Corporation

”Clarocity Corporation provides real estate valuation solutions and platform technologies designed to address today’s dynamic housing market. Our innovative platform is driving the next-generation of valuation solutions such as MarketValue Pro (MVP) and BPOMerge and setting new standards in real estate valuation quality and reliability.

Every day GSE, banking, and investor clients rely on our proprietary solutions to value assets, fund loans, and securitize portfolios. As a fully integrated technology and valuation services company, Clarocity provides a full spectrum of appraisal and alternative valuation solutions. For more information, visit www.clarocity.com.“

Now I have no idea if the statement of the GSE’s using their products is true or not, but I do know Fannie and Freddie are in conservatorship because they were not profitable. The Collateral Underwriter used by the GSEs is seriously flawed and is a costly beast that has no sustainability either. Is Collateral Underwriter a Clarocity product? I sure hope not, but have no idea. The mere thought of my tax dollars being pumped into a company like Clarocity makes me angry.

In March 2017, Clarocity was named the HousingWire Tech100 Winner. They claim the Clarocity “Platform delivers cost-effective and data-driven valuation products”. How can that be? The company has lost millions of dollars each year for the past 9 years. Does this sound very cost effective to anyone?

So now think about this: An employee of Clarocity was name “Valuation Visionary of the Year” by the Collateral Risk Network. What were the standards for such an honor? Was any due diligence done by CRN? Why would any organization honor someone who supports costly inaccurate and inefficient technology that clearly has no sustainability?

Now Serious Questions to Consider:

If a company develops, promotes and sells technology to produce automated values has not made one penny in 9 years, how are appraisers to be replaced by this technology? Clearly the technology will need constant revisions, updates etc. If the company has to continually borrowed millions of dollars to cover daily operating expenses and then issue shares of stock for repayment, this clearly is not a sustainable business model. If appraisers were to embrace such garbage, would the demise of this technology be sooner?

Clarocity Stock closed on May 1, 2018 at $.045 per share. The lowest it has been in the past 12 months.

Clarocity CLY stock

By Fed Up Appraiser

Image credit flickr - Cory Doctorow
AppraisersBlogs

AppraisersBlogs

Have questions or need help? Please contact us with any comments, questions or concerns.

You may also like...

36 Responses

  1. Scott R. says:

    OK. Interesting stuff. I’m a day trader as well as an appraiser. Gotta fund my retirement somehow. Go to Google and take a look at a Max chart for Clarocity Corp..   symbol CLY. It spiked around $5.19 just prior to the big real estate crash of 2008. It has NEVER recovered. I’m thinking .045 is less than a penny. lol.

    10

    0
    • Retired Appraiser Retired Appraiser says:

      I recommend NVIV. It spiked 100% this week. Been watching it crawl into the bone yard for years. They’re finally on the verge of going somewhere with a bit of a miracle treatment. I expect it will pull back for a couple of days to weeks before taking off again. Patience is mandatory with this company. Institutional investors are finally taking notice again after their did a reverse split a week or so ago to put it back on their radar. Not saying it’s a guarantee by any means but it’s certainly worth doing research on.

      2

      0
  2. E J B says:

    Anyone affiliated with CRN is on my DNU list.

    Bunch of idiot thieving crooked scamming con-men

    10

    0
  3. TJ says:

    Does anyone else realize the connection between Collateral Risk Network (aka Joan Trice) and Clarocity? Carol Trice, Joan’s sister is the Director of Quality Review Services for Clarocity.  Ernie Durbin is a major share holder of Clarocity. It does not take a genius to figure out what is really going on here.

    14

    0
    • Marion says:

      Oh but,

      weren’t these the same people that “put out” the Annual C&R Fee Survey by a “disinterested third party”?

      Hummmmmmmmmm

      If only there was some law ………………..

      7

      0
  4. From the same wonderful folks that first defrauded appraisers and consumers alike with ZAIO and its $10,000 territories and phony “USPAP compliant” garbage reports?

    Wish I could remember when or where I saw Ernie Durbin in relation to a TAF meeting. Anyway, is it fair to call him a ‘major share’ holder when the share price was only $0.06 a month ago; and $0.05 a few days ago? Already down to $0.045 in just another day? Congrats Ernie ANOTHER NEW LOW for a company founded on low expectations;

    Low lender intelligence

    Low appraiser qualifications

    Low fees

    Low quality

    Low credibility

    Low state and federal oversight

    Low reputation

    I wouldn’t buy a used car from these people. Why would anyone else buy their bull%#&^?

    14

    0
  5. Marion says:

    Each year, the Collateral Risk Network presents the award in recognition of the person who demonstrates leadership, innovation, professionalism, and one who strives to better the industry for their peers. We will be presenting the award at Valuation Expo in Charleston in March.

    Ernie Durbin is renowned for creativity with technology advancements and industry-wide involvement. Ernie is widely recognized as an innovative leader with vision and foresight. Ernie was nominated by his peers and we are honored to recognize him as the 8th recipient of Valuation Visionary.

    5

    0
    • Rick G. says:

      Hahaha ! Valuation sell out!

      5

      0
    • Taking a corporate stock from it’s high to an amount that is less than 1/120th of that amount certainly is visionary. So is conning the appraisers that were owed huge amounts of unpaid fees to accept near worthless stocks as compensation. Definitely demonstrates a company or individual who strives to better the industry for their peers. I’m not exactly sure who their peers are aside from other software system designers hustling phony alternative systems in lieu of real appraisals performed to USPAP..

      A company that simply shrugs off such a debacle as ZAIO was and that then holds itself out to be an expert in anything is certainly an example of innovative hutzpah.

      Leadership is exemplified by no one (as far as we know) actually going to jail over the ZAIO fiasco…then again maybe district attorneys of attorney’s general never actually went to one of the presentations.

      I get why Joan’s crn gives him an award. Her sister is an exec at Clarocity. What I cant for the life of me understand is why the national Association of Realtors has him as a featured speaker or panelist at their May 15th meeting on alternative valuation. Has NAR really sunken this far?

      What’s next, a conference on corporate ethics with Wells Fargo  as a featured presenter?

      10

      0
    • Milton P says:

      I just looked at some of the comments from the shareholders.. OMG. these people actually believe someone will purchase this company and they will make money!  Do they not realize the idiots running the company have never been successful. Not now or in their previous companies that are no longer in business. Clarocity does not have a product people want and the evidence shows no one is buying their garbage.

      The best scenario for the investors is to sell now and cut your losses. When this company goes belly up they will get nothing.

      6

      0
  6. Marion says:

    Possibly

    being a major shareholder doesn’t hurt.

    Wasn’t there something about a dividend and………………….

    5

    0
  7. Marion says:

    You guys just don’t have the “vision”

    4

    0
  8. Hooligan says:

    Yea, we need some of them ” thought leaders” up in here !

    6

    0
  9. Baggins Baggins says:

    You know, it’s the modeling that is not working. Amc’s are like telecoms with an ever shrinking, permanently limited call list. The notion they would be able to go public and pay both investors and overhead on the down swing, too much overhead I guess. Over 120,000 appraisers with careers ruined, and 10 years later, full circle is finally coming around. If only there had not been the clever multi billion dollar play to leave improperly co mingled fees going, and instead force them to bill separately.

    Oh god, read this, It’s unbearable to read. 10b dollar market, and they’re ‘peeling away’ us antiquated manually orientated appraisers and our antiquated ways.

    Clarocity CEO Shane Copeland talks to Cantech Letter

    These companies don’t just want a piece, they want it all.

    Put that 10,000,000,000 back in the hands of appraisers, watch us flourish and work diligently to protect American interests first! Q!

    O.k, I have now figured this out. They’re Canadian. On a related note, the push back against hybrid products likely crushed them.

    4

    0
  10. TJ says:

    Yea Shane Copland is a talker. He has no clue on how to deliver what he states. Hence, 9 years of multi-million dollar losses to prove he is incapable of delivering.

    6

    0
    • IF he had ever had ability to offer through U.S. Exchange it’s likely SEC would have been after him immediately following ZAIO disaster…some would call a  fraud rather than disaster. I  remember attending a marketing presentation for it with my old business partner. They even had some ex Assistant U.S. Secretary of some BS agency or another as a purported Director & speaker telling us all how ZAIO assignments were all USPAP compliant. We knew it was garbage halfway through the presentation.

      It took that long because we politely gave them the benefit of the doubt through the first half of presentation.

      https://en.wikipedia.org/wiki/Canadian_securities_regulation

      Well THIS certainly explains how they do what they do for so long.

      5

      0
  11. TJ says:

    Check this out. Definitely something going on at Clarocity. Stock now at $0.04 per share.

    http://www.stockhouse.com/news/press-releases/2018/05/03/stableview-asset-management-acquires-direction-over-securities-of-clarocity

    Should states pull their license to operate?

    5

    0
  12. Marion says:

    Shell game ON!

    Find the missing revenue, round and round the accounting goes.

    3

    0
    • Baggins Baggins says:

      A company wide audit for any given major amc would likely yield similar results. ‘Investors’ will be scratching heads wondering why appraisers are making it so difficult to sustain this business model. I vote for mortgage broker management companies. Those guys just can’t be trusted to manage these processes on their own, they need additional telecom based management. Let’s provide separation from saleseman to the customer, that’s where the real protection is needed anyways. If the shoe fits, the companies whom are largely responsible for this should wear it too.

      3

      0
  13. TJ says:

    Wow. GAME OVER FOR CLAROCITY – This just took a serious turn downward. Clarocity debt is now guaranteed by their 100% owned subsidiary Valuation Vision. Along with it comes much tougher terms.

    So if I understand what just happened by reading between the lines.. The automated technology designed to replace appraisers is not profitable, so the traditional appraisal division is picking up the tab.

    https://www.stockhouse.com/news/press-releases/2018/05/09/clarocity-corporation-announces-closing-of-fifth-tranche-of-debt-facility

    5

    0
    • Baggins Baggins says:

      Clarocity issued an aggregate amount of $467,500 in principal amount of debentures (“Debentures”) at a price of $100 per $100 principal amount of Debenture. The Debentures will bear an interest rate of 24% per annum payable quarterly in common shares (“Common Shares”) or cash, at the option of the holder. The Corporation may on 45 days notice and Stableview may on 30 days notice require repayment of all outstanding Debentures together with any accrued and/or unpaid interest and a 30% repayment bonus. The Debentures have been guaranteed by the Company’s wholly-owned subsidiary, Valuation Vision, Inc. (the “Guarantor”), and have been secured against all of the Company’s and the Guarantor’s property, assets and patents and will be registered in all of the jurisdictions in which the Company and the Guarantor carry on business.

      In addition, the Company issued 1,402,500 common share purchase warrants (“Warrants”). Each Warrant entitles the holder thereof to purchase one Common Share in the capital of the Company at $0.10 per Common Share, exercisable until November 14, 2018.

      4

      0
      • Entitled to buy one share for $0.10 where current shares are only trading at $0.045 SUCH A DEAL!!!

        I’m guessing it was that kind of thinking that made ZAIO the huge success that it was. Oh wait, that was ANOTHER LOSER before it became Clarocity.

        Now with that kind of leadership SURELY they must be entitled to some kind of an award…or maybe speaking position at a NAR conference shouldn’t they?

        3

        0
        • Scott R. says:

          April 05, 2018: Clarocity Corporation (TSXV:CLY; OTCQB:CLRYF) (the “Company” or “Clarocity”) today announced that it will issue 5,351,210 common shares to debentureholders in lieu of cash as consideration for interest payments due March 31, 2018, for the aggregate amount of $299,668.

          Guess it’s easy to issue over 5 million shares of worthless stock to anyone who was stupid enough to but a debenture from this company. Just my opinion, your opinion may vary slightly.

          Also…..on the balance sheet the absolute highest percentage of assets…..is in the intangibles. Almost 50%. lol.

          2

          0
  14. Marion says:

    But wait,
    there is more………….

    Anybody know where Kirchmeyer went????

    ???

    1

    0
  15. e. j. b. says:

    Joan needs a new car !!!

    Clearbox is offering additional services to our already existing robust database of AMC state rules and regulations. Our mission is to ensure that our subscribers stay abreast of the changing regulatory landscape. The AMC compliance knowledgebase will be easy tool that you just shouldn’t do without.

    For new customers the cost for a subscription to AREA 56™ will be $1000 a month. For existing customers, the additional cost will be $ 500 a month. This service will include access to:
    1. The database of state laws
    2. Weekly briefing (30 minutes) with our legal counsel to include:

        Update on pending cases such as FTC vs LREAC
        Disciplinary actions resolved and pending
        Updates on new state laws
        Brief Q & A session

    3. Updates of new laws or changes at the state level
    4. Regular, growing library of webinars, with a best practices approach, on compliance topics such as:

        Understanding Background Checks
        Appraiser Selection
        AMC Audits
        Appraiser Independence
        Fee Panel Management
        Third Party Oversight
        Reconsideration of Value Process

    3

    0
  16. e. j. b. says:

    And Fannie Mae doesn’t give a crap about value, condition or marketability.

    Save your borrowers time and money with a PIW

    day1certaintylogoweb-220

    Did you know that a property inspection waiver (PIW) can save you up to two weeks in loan cycle time while saving your borrower the expense of an appraisal? A PIW can both reduce costs and shorten the loan origination process by eliminating the need to obtain and review an appraisal, removing the chance of any appraisal-related delays.

    Exercising a PIW offer will also give you Day 1 Certainty®, freedom from reps and warrants on property value, condition, and marketability. Learn more about these benefits and more on the PIW page.
     

    3

    0

Leave a Reply

Your email address will not be published. Required fields are marked *

xml sitemap
AMC

Garbage Replacing Appraisers?

by AppraisersBlogs time to read: 3 min
36