Another AppraiserLoft?
If you do work for Clarocity Valuation Services, you definitely should pay attention…
Simple Wall St reports:
“Clarocity has limited growth and a worrying balance sheet”
On November 26, 2017 VaCAP shared an issue with one of our members not receiving communication from Clarocity Valuation Services concerning past due invoices. Due to our research and public sharing, our member was paid. During that time, VaCAP learned some things about Clarocity and we continued to follow the company.
We are not going to tell anyone who to do business with or how to operate their business, but we ask that the analytic appraiser in each of you look at the information and make your own conclusions about what is going on.
If you do work for Clarocity Valuation Services, you definitely should pay attention.
There is lots of information on the web about Clarocity. We encourage you to research on your own.
Here are some highlights what we have learned:
December 1: Clarocity issues 6,176,029 shares of common stock in lieu of $419,970 of interest only debt.
On December 6: Clarocity took on $1.1 million in debt at 24% interest. This includes a $100,000 buy down of the rate. Think about that for a moment. What is the cash advance rate of your credit cards? A 10% buydown of the rate?
December 6: TSX Venture Exchange has consented to the reduction in the exercise price or warrants. This was a renegotiation of the stock share price in lieu of a cash payment to a creditor.
December 7: A lively conversation about how Clarocity bringing on Appraiser Loft Executives and repeating the same bad behavior.
Clarocity has been issuing stock shares in lieu of debt since September, 2017, possibly earlier
December 8: Clarocity Stock closes at $0.055 per share. When we reported our story, stock prices were at $0.07.
December 13: Stockhouse Bull Board: Discussions of a tax loss sell off and Clarocity being acquired by another entity.
December 14: Simple Wall St reports
Clarocity has “limited growth and a worrying balance sheet”
“Clarocity is loss making”
“Clarocity has negative assets”
December 18: Clarocity borrowers another $1,320,000 @ 24% interest!
As previously stated, if you do business with Clarocity, you need to be paying attention.
Could this be another AppraiserLoft situation for appraisers?
- VaCAP Supports Shane Lanham’s Legal Fight - September 10, 2024
- It’s Just Responsible Journalism! - February 21, 2024
- Limitations for Damages Against Appraisers - January 9, 2024
Here is link to [barrons.com/quote/stock/ca/xtsx/cly] Barron’s. Lots of info here including all the financial statements and a list of their direct shareholders… There is even a prediction for 2018 for this company and it does not get out of the red. We all need to pay attention. Lots of speculative chatter going on about amcs being in serious financial trouble and it is not just Clarocity.
Clearly, the terms of the new debt (10% fee upfront, 24% annual interest, & the issuance of stock warrants) show that this company is in dire financial straits. I would think that there are many AMCs that are having money problems with the decline in the number of mortgage applications. Especially smaller ones.
Yup smells and looks like another AppraiserLoft! Thanks for the heads up vacap
Holy crap. Twenty four percent interest….I’m in the wrong business. Just told another AMC I don’twork for AMcs. It’s a real good feeling… Merry Christmas to all..
Zaio rebranded as Clarocity! Remember Zaio? If they are the old Zaio guys then they are great at scamming people.
“Zaio Corporation (TSXV: ZAO) (the “Company” or “Zaio”) is pleased to announce that is has officially re-launched as Clarocity Corporation (TSXV: CLY) as part of its strategy to take the company to the next-level as an integrated technology and services company providing the next-generation of appraisal and valuation solutions. Clarocity is entirely about NEXT.”
…it should read “as a part of a new strategy to scam and cheat appraisers“
Carl, seeing ZAIO was a subsidiary of theirs is alI would have needed to know. ZAIO was a complete scam.
IF they have offered appraisers stock in lieu of payments dues, then they are in violation of US SEC rules.
Good looking out for appraisers VaCAP!
WOW! IF they are involved with that type of activity, people will go to jail! It would be a shame if an innocent appraiser was dragged into the middle of an international securities scandal.
Every appraiser needs to investigate who they are considering doing business with and pay attention to receivables. THERE ARE RUMORS GOING AROUND THAT SEVERAL AMCS WILL BE SHUTTING DOWN QUIETLY OVERNIGHT by the end of the year. Some things that are being said are credit lines were cut off; demand notices being sent for immediate payment; $4 million in appraisal fees will be unpaid and unrecoverable by one entity, investigations by regulators have amcs running scared.
Please pay attention and share with other appraisers. We need to help protect ourselves.
David P, do you have names of the AMC’s you mention? That would be helpful. I notice that too often AMC’s are referred to in general terms, instead of specifically identifying the actual bad players. We as a profession should not be afraid to identify the bad apples. Besides, if a company is about to stiff you, who cares what they think of you?!
Carol Trice is Director of Quality and Review Services for Clarocity, Inc.
https://www.appraisalbuzz.com/quality-vs-condition/
Carol is related to Joan Trice. Never trusted Joan as a speaker for us appraisers.
I also received this email yesterday.
Dear Valued Vendor: Due to an increase in anticipated order volume in your area, we are inviting you to update your profile and compliance documents. Please confirm the following items are both current and uploaded to your profile:
*Agree to Terms and Conditions
*Enter billing information- upload w-9
*Enter E & O information- upload E & O
*Enter license information- upload current license.
Please log into the system and update your profile.
The website is http://www.cvsorders.com If you have forgotten your password, please hit forgot password, enter your email and a password reset email will be sent to you. Please note that we cannot send you work until your profile is completed. Thank you for your attention to this matter. We look forward to continuing to work with you.
Kathy Lombardo
Vendor Management Clarocity
Where is your area? I am curious.
Interesting, I have been getting a lot of emails from them for work. Shades of ES Appraisal Services. I’m sure a lot of you remember those SOB’s.
Appraisers are reporting that this company asks for appraiser’s signature stamp file! This alone should have been a red flag for appraisers.
WHOA!! A red flag indeed! Dilly , dilly!
I’ve always said that AMCs look and feel like a Ponzi Scheme. We all know that they don’t release the reports until they’ve received payment for them, so why do we wait 30-60 days to get paid??? They’re using tomorrow’s revenue to pay yesterday’s bills. When is the money going to run out? We know that they pay their office staff every week or every other week so the appraisers come in second place in the payment race. Just doesn’t sound right to me.If they have to wait until next month to pay us, when they’ve already received their payment from the lender, the two things just don’t line up in the logic column.
Just got another email from them, wanting my E & O, W-9 and License. They must be getting desperate this is the 4th one this week.
I guess the Board of Directors does not trust the management…..
Clarocity Corporation Announces Retention of Financial Advisor by Strategic Alternatives Committee Canada NewsWire CARLSBAD, CA, Dec. 27, 2017 CARLSBAD, CA, Dec. 27, 2017 /CNW/ – Clarocity Corporation (TSXV:CLY; OTCQB:CLRYF) (the “Company” or “Clarocity”) is pleased to announce that its Board’s Strategic Alternatives Committee has retained Keefe, Bruyette & Woods, Inc. (“KBW”), an investment bank, as part of the Company’s previously announced strategic alternatives review. KBW has been engaged to provide certain financial advisory services to the Strategic Alternatives Committee in connection with certain potential strategic transactions. Clarocity Corporation Announces Retention of Financial Advisor by Strategic Alternatives Committee
I wonder if they are (legally) separated from their U.S. Counterparts down in San Diego County California? Either way, neither appears to be registered to sell or offer stock in the USA. Makes me wonder how they could ever have offered stocks in lieu of money owed; if they in fact offered stock in lieu of appraisal fees that were due.
Just wanted to say thanks VACAP. You offer a true “value-adding” service.
VaCAP is possibly the most active State Coalition in the country and they do fantastic work. But lets all PLEASE stop using the term “Value added” with respect to real estate appraisal ok? It is another one of those deceptive euphemisms coined by Big Data (“Leveraging” advocates). It is quite frankly pure bullshit!
We are professional real estate appraisers. If people do not believe they have a need for us – then don’t use us; but do NOT expect me to include or ‘throw in’ some kind of “added value” like I’m selling used cars, aluminum siding or time share investment opportunities.
I was reading about “value-add” in real estate valuation books over thirty years ago??????
Doesn’t make it right. Its one of those catchy buzz phrases or slogans that sound good until you really think about what that means in terms of a real estate appraisal. I think what tipped the scale for me was hearing it used to justify alternative standards for evaluations.
Maybe I’m just getting old and cranki(er). What didn’t warrant a second thought 30 years ago now seems to be a major issue in a lot of areas. Then again, thirty years ago I didn’t have third party people in a position to mess with my pay or ability to earn a living.
Mike, my thoughts exactly. Getting really tired of all the BS. maybe that’s what they want, to wear good appraisers down, so they only deal with those that do and say what they want them to do. So much for appraiser independence.
There is a lot in what you say. States have lost a lot of license revenue. My state’s volume is down by 50%. I read their “strategic vision” and it’s focus is on increased enforcement.
Not because of increased violations and complaints, but for revenue purposes. One of the ASC functions is to make sure states have adequate funding to carry out their obligations. I think its time to recognize many have never had adequate budgets, and in recent years even those that did, no longer do.
I’m not a great fan of federalism but I don’t really see a viable alternative anymore. Lot of appraisers I speak with concur.
Just read in 100% Appraisers on Facebook some appraisers are having trouble getting paid from Clarocity. Reports of 60+ days past due with no communication. One of the comments stated a factoring company no longer accepts their invoices.
File complaints with state regulators immediately. Send complaint copy to Clarocity along with copy of invoice marked past due. I would ALSO send copy to the lenders involved reminding them that federal regulators see no daylight between the lender clients and THEIR AGENTS. Or send the ‘clients’ separate invoices saying that since THEIR chosen agents have failed to pay in a timely manner you are now demanding payment in full from them.
Past lawsuits aside, the rules are different now than they were three years ago when AMCs were defaulting and courts were letting lenders off the hook.I also wonder if an appraiser might be able to “VOID” their own appraisal with FNMA? I’m willing to bet those loans haven’t been sold by FNMA yet. All those ‘other’ parties the boilerplate says we are indemnifying would be buying loans where fnma has been put on notice that appraiser will no longer recognize any responsibility or obligation in connection with voided appraisal reports. I wonder what an attorney would say?
Way to go Trice’s!! (sarcasm). I wonder what the tone will be like at the “Valuation Expo” this year?? While I do not like to see ANY of my peers get stiffed on fees, maybe this will be for the greater good ultimately … I will explain. It seems apparent that there are not enough folks willing to do these ridiculous hybrid appraisals (which are rife with the potential for fraud), therefore there is no money to pay the ones that have. I love the push back from my peers on this subject of these risky “appraisals” ! If no one accepts these types of assignments, they will go away. Those of you that have done them, while I feel for you that you are now getting stiffed, I don’t feel that bad because frankly, you are part of the problem and the overall demise of our profession. Do you enjoy doing “appraisals” for $50 or $75?? If so, please get out of the business and allow those of us with some principles to continue with legitimate work.
Well said, my sentiments exactly, after almost 45 years in the business, I’m almost ashamed to say I’m an appraiser because of all the BS that has happened.
Well it appears the stock has continued to spiral downhill.
http://markets.businessinsider.com/stocks/clarocity-stock
And it looks like Investors are pretty disgusted with them as well. Take a look at the comments from their investors.
http://www.stockhouse.com/companies/bullboard?symbol=v.cly
Great stuff Milton! No surprise, but nice to see some actual figures as to what a sham the Trice organization actually is. Here’s another thought .. if no one actually opens the “click bait” emails that “Appraisal Buzz” essentially is, maybe that annoying publication will go away as well. Joan Trice certainly does not represent me as an Appraiser. The sooner the day comes that the “Appraisal Buzz” group is discredited, the better.
Thanks Cort. Not sure how much the Trice’s have to do with Clarocity other than an employee / employer arrangement, but it does seem to raise an eyebrow.
Clarocity, Clearbox and Appraisal Buzz are all inter-connected … Google it for yourself.
They sure are, gee do you think they got together to set the fees, I think there’s a name for that, Price Fixing????
In an earlier post, I expressed sympathy for those who are getting stiffed by the Trice organization (Clarocity)… On second thought, I would like to retract that sympathy, and simply say… serves you right. Given that those of you that succumbed to these ridiculous hybrid “appraisals” are part of the overall problem, I now have no sympathy for you at all, and I hope you do in fact get stiffed. Considering that you only made $50 to $75 per job on these worthless pieces of paper, you should not have lost that much (unless you were a complete fool). Consider it a learning experience… and/or your most recent payment of your “dumb (insert alternative word for donkey here) tax”. Wise up, and have a nice day… oh yeah, and get out of the business.
Cort, Love it.
While I do not wish ill on fellow appraisers, I do understand your point. This blog and other publications have given enough warning about Clarocity and some of the alternative products being pushed. If they still choose to complete work for companies in serious financial trouble and are pushing products with higher liability, they do have to accept the responsibility if they do not get paid.
Indeed Milton. I have no sympathy for clowns that do not know their own value to the process. It begs the question… if you do not know the value of yourself, how in the world is anyone supposed to trust your opinion of “value” of someone else’s property? I would suggest reading “The Art of War” by SunTzu. For all of the dummies out there… Refer to the sections regarding knowing yourself in order to know your enemy. This stuff was written +/-1000 years ago… there is a reason why corporate folks still study the same today… Wake up people! Oh yeah, and the rest of you clowns that think that $50 to $75 per “appraisal” job will get you to the promise land… get out of the business… please!
Click Milton’s stackhouse link above and read the investor/trader comments. It’s a riot! They still think there is value there!
The stock closed at $0.06 today. You would need to hold a couple of ship loads in order to make anything.. What does not make sense is why is Stableview accepting stock in lieu of payment? Why are they even loaning money to a company that has not been profitable in years?
Can they have “shorted” their own stocks? Bet against themselves through hedge funds? Where have we heard THAT one before?
I’m serious. Look at all the investor chatter on the sites your link lead to. Makes me think Im watching the Big Short all over again.
By the way, is this a Canadian Stock exchange? When I looked into the company data specifically said they were not allowed to offer or sell stock or securities in US exchanges…and therefore SEC had no authority over them. Maybe I misread?
Yes, this is the Canadian Exchange. SEC has no direct authority over the sale or distribution of their stock.
The Big Short – yes very similar.
Just got this press release from Clear Box. Wonder how much the stock will be worth after the release of this “groovy” new product?? (LOL) See below:
Clearbox LLC Announces the Launch of Atlas™ Joan Trice, CEO of Clearbox announces today the launch of Atlas™, their transaction management platform. The existing Clearbox vendor management tools will be fully integrated for a seamless end-to-end system. More details and information will be provided at Valuation Expo, March 19-21 in Charleston, SC. Come visit us at the Clearbox booth to learn more. “We have devoted several years to perfecting the tools to accommodate our clients’ demands for access to a central database of appraiser credentials”, comments Trice. “We now have over 13,000 registered appraisers with license credentials, background checks, fee schedules, E&O, geographic coverage and so on. It is everything our clients need to comply with regulations and enhance operational efficiency”. Nick Greenwood, the Clearbox CIO, who recently joined the team will be bringing Atlas™ to market. Greenwood notes “the marriage of a transaction platform with a vendor management system gives us a competitive advantage. Every stakeholder will benefit by a streamlined process. There is nothing more rewarding than to deliver solutions that simply make sense for all parties to the transaction”. About Clearbox LLC , headquartered in Ocean City, MD was founded in the midst of the housing finance crisis. Clearbox develops solutions for compliance and brings transparency to the appraisal process. 9927 Stephen Decatur Highway, G-16 Ocean City, MD 21842 Joan Trice jtrice@clearbox.com 513-659-1656
Oops! accidently clicked report comment in error! My apologies! meant to ask if appraisers are one of those parties to a transaction that her system ‘makes sense to’?
I wonder who the 13,000 fools on their claimed list are. On a positive note she claims to have ‘geographic coverage’ whatever that is. Maybe they are saying the manufactured shortage is over.
I got the notice, can’t figure out why I haven’t done business with them. Maybe they are fishing to suck in more appraisers. Oh well, Happy St.Patricks Day.
I wonder if the 13,000 is the number of email addresses she has, rather than the ACTUAL number of Appraisers doing work? Similar to Diane, I get emails from them constantly stating that my license needs to be updated (etc.) with them … as if I have a history with them. Keep in mind, I have never done one job for them … I also have never even signed up with them! I would be suspicious of her reported numbers.
Didn’t ASC require that all AMCs PAY A REGISTRY fee for all the appraisers on their panels? Seems like that would be a decent source for how many she actually has, shouldn’t it?
Someone should call them on it. What are Maryland’s rules on AMCs and their advertising claims?
Excellent question Mike!
Several years ago I responded to a proposed question in Appraisal Buzz that was part of a contest. My comment existed of no more than two paragraphs and was straight to the point. Low and behold, I was a winner! The prize was free admission to an upcoming Valuation Expo where I would be allowed to participate in the closed door, executive board meeting and share input. I became suspicious and started to investigate. I looked up CRN (Joan Trice) and saw that only one board member was an appraiser, and all of the members had products they were pushing to “make money off of appraisers”! I called around to some of my old vet appraiser buddies and got the low down. That said, I think many appraisers just aren’t aware of what she’s really about. She presents as an advocate for appraisers, but in reality, she’s really all about making money off of appraisers. That includes working with banks/AMC’s to increase their bottom line. More recently, I see Dustin Harris jumping on her bandwagon.
Indeed! I have noticed and/or wondered the same thing myself.
This has got to be the funniest thing I have ever read! This company has not been profitable since 2012 and they are winning BS awards for their new “MarketValue Pro” product. If this article is accurate, our tax dollars are being thrown at this garbage and the defunct company. And they want to know why Fannie and Freddie have asked for another bail out. Let’s bring this to the attention of FHFA and end this nonsense!
https://www.housingwire.com/articles/42873-hw-tech100-winner-clarocity
Gee did they leave out ZAIO?
See the latest on Clarocity
http://appraisersblogs.com/multi-million-dollar-garbage-technology-vs-appraisers#comments
Clarocity Stock now at $0.011 USD of $0.015 Canadian. See the new blog article about Clarocity.
http://appraisersblogs.com/clarocity-record-low-stock-prices
WHY would their demise be of the least little concern to anyone with integrity?
They are best known for misrepresentation of what their historic products do or what standards they meet, and the apparently overly optimistic embrace of the snake oil they were hustling by purported appraisal ‘experts’; GSEs and various Governmental regulatory agencies.
I personally attended the old ZAIO huckster’s meeting, where all from this sausage factory contended ZAIO reports completed in 24 hours would be USPAP compliant. They had a former U.S. Government EX Bigwig there to lend credibility to the lies of USPAP compliance and governmental acceptance. Fortunately, I was not one of those “investing” $10,000 per zone for an exclusive opportunity to be fleeced by them. Nor did my business partner nor anyone else we knew with more than 3 years experience in the profession.
With their traditional relationship with the truth, they (apparently) pinned all their hopes on the hybrid or so-called bifurcated hybrid fad, and the ability of super sales folks to ‘sell’ that particular pile of eManure to various and sundry fools within the profession of appraising and associated fields.
Whether the Hybrid was an outgrowth of their “innovating” leveraging of big data, or whether there were simply too many instances of their AVM product lacking adequate accuracy & another ‘new’ and innovating hustle was needed, who knows?
Speaking solely for myself, I won’t lament their potential passing one iota. Let this be a reminder to all other Title Co owned, or BigCorp owned AMS/AVM/Hybrid-Hucksters. We already HAVE accepted appraisal practices and procedures tested over time. We also have a minimal set of standards of performance, which though frequently tortured by The Appraisal Foundation to placate their commercial masters er sponsors, still provide a pretty decent set of standards for us to apply.
For all would be innovators cut from the same cloth, let me offer a free suggestion for innovation. Try HONESTY and Promotion of higher, rather than lower standards.
By the way, can we also stop with the meaningless euphemisms? My Big Data doesn’t require leveraging, harmonizing or value-added fluffing.
Data Analysis is a valid tool in the appraiser’s arsenal. It is not a reliable substitute for real appraisal techniques and practices performed by experienced appraisal experts.
The assumption you make is that Zaio was ever really in the business to develop anything. I invested lightly because the appraiser took all exterior photos and the appraiser imported and scrubbed the data for credibility (merged MLS/Tax/etc). Every time we hit a point where a zone was complete? Suddenly their software didn’t work or the company was going in another direction. A couple times they actually produced something (Arizona) and it worked well. In short it was very much like a pyramid scheme. I don’t think there was any intention of producing an appraiser owned AVM. There’s no substitute for a real appraisal but a full 1004. etc., isn’t needed for every valuation need. Right now we are missing out on the majority of the valuation work AVMs/Hybrids/etc because there are companies out there producing them AND for FNMA! An appraiser owned company for this is long overdue.
Going on Net 4 months for payment. No response to over 12 messages trying to collect payment. Disgusting. Please beware.
There is talk of an investigation for Insider Trading going among those con artists at Clarocity.
https://stockhouse.com/companies/bullboard?symbol=v.cly&postid=29657154
Could you give me the gist of it? I won’t allow cookies from a website I don’t know.