The AI isn’t any better in this matter.

exactly what they will do

Carl- You’re right! Oddly enough when I took all of my appraisal classes, not one of them taught me how to ‘engineer’ an appraisal. So I guess his re emergence in another know nothing company is a good thing, right? Wow! After 30 years I’ve been doing it all wrong! (Is he talking about the CE kind of engineers; the Choo-choo train kind, or sanitation engineers? My bet is the latter. Straight from their software analysis to the trash can somehow seems appropriate.

I have no doubt that they are re-imagining appraisals too. Imagine, if only all those pesky regulations did not apply. Imagine if knowing details about a transaction, property or market were not required. Just imagine…

The FIRST sign of a company that knows next to nothing about appraising is when they start of with all the meaningless warm and fuzzies in their self serving descriptions. The guys history tells one ALL they need to know.

Rels. Really?

PS- I don’t ‘manufacturer’ appraisals. Though their use of that particular term makes me wonder if they do. Right along with manufactured data and values.

Clear Capital Hires Real Estate Valuations Innovator

Jeff Allen Joins Widely Respected Analytics & Valuation Solutions Leader

Allen will focus on re-engineering and re-imagining how appraisals are manufactured with a concentration on modernizing the valuation industry in a healthy manner. Additionally, Allen will guide internal teams in the development of analytics and data aggregation tools aimed at increasing quality and efficiency around appraisal reports; and vet emerging technology from outside the sector, while continuously supporting Clear Capital’s operational processes.

Previously, Allen served as CoreLogic’s Senior Leader of Valuation Client Operations and RELS Valuation’s Chief Operating Officer where he lead efforts to evaluate and incorporate industry data and product assets into internal technology and processes, including MLS data, Public Records data and other third-party analytics products. Jeff brings more than 13 years of real estate valuation and appraisal experience to the Clear Capital executive leadership team.

First American Realty; using the above will tell you what to sell your house for and list it for your. When sold, First American/CoreLogic will order the appraisal through their AMC services.

First American will sell the appraiser the appraisal forms. First American will do a Home Warranty (insurance) “inspection.”

First American will handle the escrow services.

First American will provide the mortgage origination services.

First American will ‘intercede’ between the ‘loan officer’ and the appraiser through their AMC.

First American (or CoreLogic) will upload the xml and env formats to the CU initially AFTER the appraisal has been uploaded to them using one of First American (or affiliates) Mercury or Appraisal Port systems.

First American/CoreLogic AMC will argue the value with the appraiser for the “lender” (themselves). If a loan is made,

First American will service the loan.

If the loan defaults I imagine we can count on First American to perform the asset preservation services and maybe even list the property for sale with First American Realty…wait a minute…isn’t this where it all started?

Thank goodness for the FTC watching out for us all! Otherwise all the consumer protections and anti fraud protections developed over the past 80 years could be virtually eliminated in their entirety if one company ever controlled real estate transactions.

To the VA, please do not allow this! You are setting yourselves up for massive problems in the future. I am not even on the VA panel, so I have nothing to gain or lose from this.

RA

David, you got me on that one! Agree 100% (except the nails and pliers part).

Here is the ‘unofficial’ response form those that want to remain anonymous at the presumed ‘official’ sources (1 & 2 only-the rest is just me).

1. It’s no secret that part of it is economic and funding related. TAF needs to sell USPAP (and related courses) in order to generate operating revenue. Personally I’d rather they just raise the quadrennial dues by $65 (online USPAP cost).

2. As one regulator explained it recently the constant changes are necessary in order to torture USPAP into something that appears applicable to all of the various disciplines represented by TAF sponsors (sponsors that account for 90% of TAF funding).

3. Of course NONE of those other disciplines ever appeared in FIRREA; and most are not able to be regulated through or by anything TAF does, so it begs the question about why those specific disciplines were ever sought out as sponsors to begin with.

4. USPAP was originally supposed to be applied as our (appraiser) peers would apply it. Not AARO; AICPA, FNMA. Freddie Mac, ACI, Ala Mode or Bradford Forms, First American (‘Solutions’ or otherwise)  or the International Valuations Standards Council; or the ignorant regulators of Oregon, Maryland, Illinois or California choose to misconstrue it. It certainly was never written or envisioned to have foreign nationals on the TAF advisory boards dealing with USPAP as it applies to REAL ESTATE appraisal-as mandated under FIRREA originally.

I submit they have grossly failed at the ONE thing they were charged to do as a result of all the manipulative changes; “maintain the public trust” in the appraisal profession.

Im reminded of a Treasury Department appraisal friend who keeps telling me being an independent appraiser today is no different than being a skilled high end buggy whip manufacturer around the turn of the 19th to 20th century.

Maybe.

What I DO know is that I continue to provide a valuable professional service to those that are capable of understanding why knowing a property’s real market value is important. Or, why having an accurate analysis of the myriad factors than can affect that value, or marketability is also crucial.

Those folks (attorneys mostly; some tax accountants and people lending their own money) will continue to pay me for my professional services.

If all the other users of appraisal services and the United States Congress and State Legislators; and certain special interest ‘appraisal educators’ are content to participate in the deliberate fraud that is behind the push for hybrid semi automated “appraisals” then they can deal with the results.

Just don’t use MY tax dollars in 2020 for the next bail out. FIRREA as it was written in 1989 was good legislation. Its been twisted and tweaked a lot since then to allow for carve outs and elimination of the checks and balances field review appraisals used to provide. You see, with ‘Big Data’ and computers we really didn’t need all those unnecessary costs, right?

I mean what could POSSIBLY go wrong in say… 2009?

Jodey Arrington- Washington DC office, 1-202-225-4005. Abilene, TX 1-325-675-9779. Lubbock, TX 1-806-763-1611.

If you live in his district, go pay him a visit !!! ALL APPRAISERS need to become lobbyists for YOUR industry. You MUST begin a dialog with your representatives on these matters TODAY and don’t expect others to handle it for you.

Interesting note;  A CC employee stated in their company review, this company had not hired a single veteran that they know of, and preferred to hire only younger people with less experience.  You can’t make this stuff up.

Run this search on google:   employment review; clear capital amc

Here are a few actual excerpts of supposed employee reviews.  I’d doubt the legitimacy of all the glowing reviews, except to presume their the tech geniuses who have a mainline into appraisers pockets.

I was excited when <>. I learned basic appraisal practices yet it was rather alarming that we allowed brokers and appraisers to value homes from their desktop’s which usually were located in a completely different state. Hardest part of the day was quality vs quantity as big AMC’s make there revenues through volume. <>

CC is a lifestyle gig, not a career opportunity. It will pay enough to cover basic bills, but not flourish. The sweatshop culture is oppressing, despite some really good people. The problem is the low-quality middle management and direction under the operations manager.

Advice to Management / More dynamic training. For someone to come off the street and not know about BPO’s or PI’s or all the other reporting. Teach them from the bottom up how it works, Hire more “older” people, not just Millennials. Get some experienced veterans, would make a world of difference in the atmosphere. Need to hire a Vet, disabled vets, or any kind of vets. There are NONE that I have met.

Pros / Really innovative technology happening here. / Sometimes work life balance can get out of whack, but this is also the tech industry.

Then I viewed a picture of their offices, and my spirit is broken for the day.  Wow what a nice office, and they keep building them in more and more states.  Puts my 20 year old desk and old broken wood chair to shame. Well, the appraisers are indeed at the bottom of the compensation ladder if dealing with amc’s.  That might be a tough sell if lobbying something like the VA, ran by appraisers.  Appraisers whom dealt with them only a few short years ago may be surprised they’re reportedly up to 500m revenue company.  I think they’ve taken quite a large enough portion of the pie, and something should be returned to the appraisers by now.  The conspiracy theory appears to be true; the amc’s seek to eliminate traditional appraising and replace it with a tech based automated approach.  That would be why they focus on hiring people with tech experience rather than real estate experience right?

Mike, this line of consideration regarding anti trust violations is surely a topic worthy of stand alone article presentation.  Dave provided me an interesting court case link which showed how this one amc was deemed compliant because they had a static fee rake, like 325 appraiser, 50 amc split or something.  I was quite disappointed with that though, because as a practicing appraiser I know those figures are just from the majority pool of assignments which the amc was able to divvy out through mass standard process, and was likely not the individual one offs, quote fee orders, or tough to place orders.  Amc regulation missed the mark when it failed to define a standard business model for fee sharing.  Now if the one amc in question (see Towne for link) was deemed to pass the sherman argument via standardized raking, would that not also allude that all amc’s whom do not utilize standardized sharing would be in violation?  Act amc bragged to me they contact no less than 10, and even 50 if possible, unique appraisers to get fee quotes for each individual order.  Some lenders even engage multiple amc’s at once and the one whom presents most appealing terms to the lender and customers gets the order.  Almost all amc’s boast in their solicitations they keep costs and turn times low as a primary function.  This is restraint of trade, but there is inadequate means for appraisers to pursue class action against amc’s.  It’s the David vs Goliath argument on a smaller scale.  It remains factual that ‘C&R’ was traditionally defined per the highest average standard quotes from appraisers presented fee schedules as a group.  Somewhere along the way presented fee schedules and highest average fees which worked well for the peer standard at large were disregarded.  There can be no C&R without uniform engagement, and amc’s routinely add to FNMA requirements, often doubling such working expectations.  Amc’s have turned this industry into a free for all, and so it shall remain as long as individuals working there have no accountability through company licensing processes.  A company is not a person, licensing a company is pointless.

RA, one of the reasons why physicians, lawyers, plumbers, etc don’t face the issues, lending appraisers do is that those professions have MORE control and/or influence over their business practices. Again, lending appraisers have lost all control of the lending appraisal process to our “very” clients, lenders/amc and lender interest groups. Pretty amazing….when was the last time you told your doctor that you will pay only a certain $ for a medical procedure or tell you dentist how to fill a cavity. It does not happen. Those professions have control over their business practices.  After 39 years in this profession, the appraisal profession has never been in control the of appraisal process. However, with the advent of the AMC business model, the lending appraisers have lost all control of the appraisal process. Lending appraisal has become the closest thing to professional slavery.

Mind Boggling

Please read the full article (reminding or clients to read the full report) Michelle Bradley is 100% Appraiser. Most Appraisers are Realtors via our membership in NAR we have the cream of the crop Appraisers representing 100% Appraisers. Please read all the way through.

Bill, Appraisers DID have a voice at this meeting. I was one of the speakers, invited by NAR. I have been a VA appraiser for 20 years, and in the appraisal profession for 31 years. The NAR has many real estate specialties as members, including appraisers, property managers, commercial practitioners, etc. NAR’s Real Property Valuation Committee is made up of appraisers nationwide. NAR turned to their appraiser members to provide commentary in this meeting, and it was us stating that the VA is the “Gold Standard” and should not be modified. I am on a campaign to remind everyone that REALTOR is NOT synonymous with real estate agent. “REALTOR” is any individual who is practices in any aspect of the real estate profession and is a member of the National Association of REALTORS.