Antitrust And Corelogic
It’s not been a good couple of weeks for CoreLogic, the massive data aggregator of real estate information. It’s been no secret that Corelogic has been steadily amassing all the major real estate data sources and the top MLS platform vendor. In my industry, they purchased the market leader of appraisal software, and many of my peers became wary of some of the software changes that were initiated.
CoreLogic (NYSE: CLGX) is one of the largest real-estate data companies in the nation with 4.5 billion records spanning more than 50 years. It operates in North America, Western Europe and Asia Pacific.
Here are a few recent stories.
- Austin MLS accuses CoreLogic of selling its data to appraisers group [The Real Deal]
- DOJ demands CoreLogic hand over MLS data amid antitrust concerns [The Real Deal]
- Reserve Bank ditches CoreLogic, but analyst defends home price data [Australia ABC]
President & CEO at Miller Samuel Inc.
Jonathan Miller is President and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm he co-founded in 1986. He is a state-certified real estate appraiser in New York and Connecticut, performing court testimony as an expert witness in various local, state and federal courts.
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TOTAL software has deteriorated significantly since Corelogic bought a la mode. They have removed several features which allowed appraisers to reuse data from their own comp. databases and tried to force appraisers into a data sharing relationship with other appraisers. Where is the FTC when you need them?
Heidi Ford probably getting some sort of kickback 😉
Heidi Ford call them
Seems like there’s a good possibility Corelogic is selling Total subscribers data in light of all the revelations lately.
I have no doubt that the only reason they bought up Total and ACI is access to the data. They’re not scraping it for fun.
I don’t believe Corelogic owns ACI. First American Financial Corporation is not associated with Corelogic. However feel free to call ACI to verify.
LMAO
Feb 5, 2007. First American Real Estate Solutions Merges With CoreLogic Systems …
http://www.firstam.com/…/first-american-real-estate-solutions-merges-with-corelogic-system...
Feb 6, 2007. First American merges with CoreLogic – Orange County Register
https://www.ocregister.com/2007/02/06/first-american-merges-with-corelogic/
Oct 30, 2008. FirstAm CoreLogic Releases Industry-First Negative Equity Report By …
https://dsnews.com › News › Market Studies
Jun 1, 2010 – First American Completes CoreLogic Spin-Off – HousingWire
https://www.housingwire.com/articles/first-american-completes-corelogic-spin
Jun 1, 2010 – First American Financial Corp. and CoreLogic today announced the formal separation of the two companies.
Oct 22, 2011 – First American files offer to buy back its spinoff company CoreLogic …
https://theamericangenius.com/housing-news/firstamerican-files-offer-to-buy-back-its-spinoff-company-corelogic/
Oct 22, 2011 – SEC papers filed. LOS ANGELES – After spinning off data and analytics company CoreLogic, First American Financial Corp this week offered …
ACI Unveils Next Generation Sky Report Featuring Native App and …
https://www.businesswire.com/news/home/20180326005693/en/ACI-Unveils-Generation-Sky-Report-Featuring-Native
Mar 26, 2018 – ACI, a division of First American Mortgage Solutions, today unveiled the next … These tools enable appraisers and other real estate professionals to … ACI’s cloud-based and enterprise software applications empower.
You are amazing. Good one. This company does not have a monopoly on the industry or anything like that. Don’t worry about it. google search; First American List Of Subsidiaries.
They are accumulating appraisers’ data and will begin selling it back to the appraisers in November of this year. It’s free to those who signed up last year but even those folks will begin paying for their own data in November. This may be a dumb question, but is there a source out there where appraisers’ data is aggregated? It makes life much easier when we have access to others’ comparables.
Respectfully disagree. That seems dangerously close to appraiser influence because ratings are included.
Corelogic is trying to be a monopoly; stealing our intellectual property without compensation. I think we need to sue!
The Austin Board of Realtors has already filed suit because their data ended up in the county tax office. They’re also being investigated by the DOJ. Waiting to see how it all goes.
What is wrong with our industry?
USPAP to the appraisers: “you must maintain confidentiality, if you are in violation you will lose your License.” Corelogic and FNMA are never my clients, but they use all of the data from my appraisals and give it to others. It appears it does not really mater anymore, the last 6 FHA appraisals I did were all 100% financing with the seller paying all of the CC. No one learned anything from 2008-10. 3 more years and I am done.
From FNMA: “Appraisal Summary Findings simplifies appraisal data sharing by providing lenders, mortgage insurers, and aggregators direct access to the latest appraisal information.”
FNC Appraisalport charged $15 to send a report, after Corelogic took them over it now cost $30.
“What is wrong with our industry?” Simple, we are sheep being led to the slaughter. All scared of our shadows so we hide in our holes unable to collectively come together and form a UNION to defend our livelihoods. This is the sad truth. Phil Crawford would be an ideal candidate to lead the charge. He has the existing platform. He is the VOICE OF APPRAISER(s) and is connected. Another candidate would be LORI NOBLE. She is also well connected. Respected within the appraiser community and understands the hardships we all face. It’s time to come together folks. The survival of our profession as we all know it is in jeopardy.
*** deleted comment ***
Upsetometer regarding appraisers selling out their industry with the use of remote typing services; High. In the recent uad survey I requested a data entry field for all outsourced services used and all information provided to the appraiser, including a total consumer fee breakdown and total appraisal services used fee disclosure line.
Appraisersblogs, I am a member of the AGA. Furthermore those two nominations / suggestions are not money grubbing whores. Think what you may but I have had the opportunity to meet, socialize and hear from them. They stand up for the profession when others are silent. Brian Jarrard Lori Noble
David Samnick, just FYI, we are not the author of this comment. It was posted by a “USPAP guy” on AppraisersBlogs website. We’ve met Lori Noble personally and have spoken to Phil Crawford many times. We appreciate their contribution to the industry.
Both Phil and Lori are highly respected members of the national appraiser community. Lori has been active with the National Coalitions, and Phil is busy informing both appraisers and consumers of the need for certain changes.
The National Coalition of state coalitions was started as an alternative to unions David. A group conference call was held prior to their creation that included other nationally known appraisers with proven track records of fighting for appraisers.
Philosophically, some appraisers cannot bring themselves to join unions. Those of us fighting as unions simply don’t have the time to wait while the rest of the disparate coalitions get up to speed. Some show tremendous promise and competence. Others are social clubs.
Make no mistake David, there is only ONE organization that is literally fighting for appraisers without apology or hesitation. The others, while highly respected for their efforts and localized achievements, tend to avoid harsh criticisms of TAF or even their own state boards…even when needed.
Right now, as far as I know, it is only the AI and the AGA that have called for the complete elimination of the TAF; reversion to much earlier versions of USPAP (circa 1991-2008+-) and federal national licensing to be overseen and regulated by ASC rather than 50 different states.
It was AGA that lead the opposition to the first hybrids attempted by First American Realty Solutions under the PacePro label. There IS already a union David (as you are very much aware).
David, we will never tell or suggest a member they cannot speak freely or disagree with any position THEIR union has, I personally do not appreciate the language or the inferences in the post above. I spend more time working for free on AGA issues than I do on my own appraisal business. If you want to help or have specific ideas, then get actively involved.
Snide potshots in blogs without purpose only create divisiveness at a time when all appraisal organizations need to be trying to work together, whenever possible. We also aren’t required to agree with every position of the other organizations in order to appreciate and respect their efforts.
I would personally prefer different nomenclature, but the idea is valid. Maybe call it an association or affiliation or something, but if you call it a union, some folks will simply tune out.
I used to think that as well Dan. Until I joined and became active in the Appraisers Guild (a non-partisan UNION – though admittedly our parent unions are). Either way, we already HAVE different nomenclature called Professional Appraisal Coalitions.
My union actively fights FOR appraisers daily. A relatively few great coalitions also fight for appraisers in their states – though in a broader policy sense rather than 1 on 1. [VaCAP; Illinois, Louisiana, NC, & CaCAP come to mind-there are probably more I’m unaware of ‘fighting’]; as well as others still seeking their own identities.
But NO other organization anywhere will get right down to the nitty gritty of a specific appraiser’s issues and fight directly on their behalf at either AMC, Client-lender, or state regulator level, like AGA will. Not one.
When it comes to a fight with state regulators, I haven’t found our members to be too uncomfortable with a union having their backs.
Unions are known (right & wrong) to be ‘fighters’. We are not so impressed with our own titles as to be above using good old fashioned Anglo-Saxon terms (& solutions) like many ‘professional’ organizations, that have ‘evolved’ beyond that.
Fwiw, I am more proud of having been referred to as a junkyard dog than any formal titles I hold with the Guild. PS – in recognition of our many Latino or Hispanic members, I have incorporated verbiage like pendejo y otra mal palabras as terms of endearment for our opponents into our fighting (just kidding about the language… at least in public.)
While we are capable of polished communiques, we’d hate to have anyone think we will shy away from a fight when necessary.
When do we start the class action lawsuit for them stealing our data because my report clearly states it’s all copyrighted and Core-ill-logic are specifically not allowed to farm any information from my reports as well as Fannie Mae and Freddie Mac
As soon as we can find a deep pockets national caliber contingency attorney that is not expecting a union to underwrite a legal battle for what ultimately is a majority of non-union members and mostly non-member consumers.
Volunteers for a full-time search team or committee are certainly welcome. Contact janbellas@appraisersguild.org myself (714) 366 9404 after 10 AM; or Mark Skapinetz. (markskap.aga@gmail.com )
Let’s Do it. I’m in. I’ll pay thousands are like me…Class Action Lawsuit or we will soon be exterminated
Ron, please email me at mike@mfford.com offering to pay is not the first step – nor do we hope it is any step – but in the end who knows? IF non-union member funding ultimately is required, then whatever organized efforts to that point will have to be turned over to NON-union trustees. We can’t represent non-members. We also think that with a viable 12+ Billion potential CA, appraisers should not have to fund law firms that specialize in this.
I’ve personally spoken to Constantine and Cannon (handling the Louisianna FTC case). They want AFL-CIO to underwrite their costs. That’s not happening. Makes good business sense for them, but none at all for either us or AFL-CIO (No union can fund a lawsuit using their member’s dues that benefits non-members more than its own members). I respect C&Cs business sense, but we are looking for a firm big enough and CONFIDENT enough in the cause to take this on at their own expense. We’ll give them dozens or even hundreds of volunteers to do research, but if they don’t have the fire in their bellies to take this on its own merits, then they are the wrong firm for the issue.
Why not then,
Just file with the FTC, the anti-competitive nature of the entire game. File it similar to the way the AMCs filed against the state of Louisiana, except, not as a call out of teeth whitening dentists, but rather as a reference to the FNC case. The AMCs did not continue to pay legal fees for the LA case, heck I think all the original complainers are out of business and the case still hasn’t finished.
Great idea Marion. Pls email me on this. I’d like to explore it further with you.
I find that funny, the MLS Data is so poor in Shasta County, CA that many fields are WRONG or just left BLANK, no requirements to fill in many areas and the Agents guess at some areas without doing any research, buying the data is a joke, Appraisers don’t use if as is
Sounds like a few local appraisers need to meet with the local mls Board and educate them as to how doing this can only benefit them. Sometimes you get a small cadre of folks that think it’s a test of passage. Protecting the big fish in the teeny pond.
I totally agree…. it is up to the Appraiser to uphold and follow USPAP. Don’t get bought with this time saving crap. One must be in control of their software. Use Homeputer. Call the assessor’s office. Try and get as close to first data set as you can. We know RE Agents are largely inaccurate but we should expect that because part of our role is verification. A good appraisal can take a while… charge accordingly.
By the way… I stopped using corelogic owned data when I found errors in their data. I do not have any faith in their data which is why I refuse to use them….. it does make life difficult but I at least I can legitimately claim responsibility for any errors because they would be mine alone.
Re read the linked articles, specifically the very first linked article above. Go through the DOJ request and specifically read the four demands. This appears to be about several aspects of unauthorized data sharing, as well as arguments about the functionality of accessing data from within the mls network which allows agents to purposefully consider flat rate listing services.
An emerging class action where buyers and sellers feel swindled because the mls system allows searching by brokerage fee amount. It’s common knowledge that a portion of all agents and appraisers shy away from flat rate realty services because of their awful service standards and lack of worthy personally focused representation. So for all those realtors whom said flat rate realty would never hold up, as they kept charging what were just yesterday; standard point fees (most likely ranging from 2.5% to 3.2% on each side), the class action may seek backdated service fees refunding consumers based instead on a flat rate representation table. All agents whom may have used the search listings feature by commission are on the hook. What do you think flat rate would do to the appraisal community? Should we be held to similar standards that we would be accused of anti trust if we refused to accept discounts from amc’s? Think about that very carefully before getting excited about this.
This reminds me of weaponization of the irs against certain groups with certain political viewpoints. One specific demand of the discovery process is a complete track history of all agents whom at any time used the mls search feature to search by compensation prior to showing a property. Then of course, the other side which appears to be the wholesale transfer of database information which is then used indiscriminately by parties outside of the direct realty and appraiser community. Both issues are a consequence of excessive data integration and a move away from locally managed and locally controlled data base management.
Audit the fed. You are expected to make personal sacrifices and adopt a completely new socialistic business structure where open market competition must adhere to the lowest common denominator. You do not own anything. The corporations are in control of all the data and all the wealth by proxy. Just my personal opinion but this appears to be weaponization of the DOJ against traditional realty process, most likely silently promoted by flat rate companies whom seek to dominate the market. Did you hear the one about how amazon is just about ready to join in the flat rate listing game? Do you believe in coincidences?
Don’t get your panties in a bunch.
Remember that RE sales commissions are built into “market value” as the typical expenses of buying and selling. So, if someone can force commissions to 2%, the lost sales commission, also translates to lower values, because your value isn’t being bumped by the higher commissions. Think about the FSBO that comps out against MLS sales where commissions were paid, and, those commissions are most definitely reflected in sale prices. It would be a grave misunderstanding to believe that sales commissions could be forced lower, yet, values will continue to float as if, sellers don’t want to sell and move, and will wait for the highest price offer to come from an agent who isn’t going to bother wasting time to make higher offers, if the commission is capped. I wouldn’t bet that some online bid site would bring higher sales price offers in seconds, until corporations are buying the sales and homeowner/occupiers give up the homeowner part.
If agents are only selling the properties with the highest commissions, there would not be a low inventory issue.
Agree with Marion on this.
One exception-when I was an agent I made my own conscious decision not to work on listings with short commissions. I provided great service and expected to be paid 3% for either the listing or selling side. When I listed a property I wrote in 6% or 7% because I knew what it took to interest others in selling my listings.
As a listing agent, I had more 7% commissions or listings where selling agent got bonuses than was typical. I made a conscious decision NOT to even show a 2.5% listings period. If the other agent was too lazy, desperate or unskilled to obtain a C&R commission, then I was not going to gamble and see what OTHER areas he was too lazy and unskilled in. Three exceptions to that in my career. (1) my buyer found their own house and the escrow owner FSBO seller made it very easy (2.5% to us); a distress sale by an illiterate (literally) old man and woman victims of predatory lending (my dad and I convinced Coldwell Banker Corporate to accept a 1.5% gross commission on that one), and the PMI company went overboard to help any sale, rather than see it foreclosed (Foremost Guaranty circa 1984) and lastly on a close friends house
I even charged my own mom and dad 6% when a walk-in came in and I sold their house without it even being listed in advance.
NAR and local boards have never (in my personal experience) prohibited low fee listings. Then again, there was no rule at the rest of the agents laughing our tails off when Help-U-Sell and other discounters became more active. Generally we just considered those ‘future listing leads’.
It is the office broker that sets fee policy in his or her office. Not the mls or NAR.
That sounds like a blanket adjustment statement……. AND the closed sales price does not include the closing costs on the sales report. However, if we are talking sales approach an additional 2 percent will not make a difference at the negotiating table if the market is hot. Question: How would you test if homes were closing at 2 percent less as a result of the commision change?? Who here knows of an RE Agent who offers to take less money because the deal is offering less commision points? I would likely think the opposite. If a RE Agent has a number in mind I am sure they would manipulate the sale in order to achieve it.
Well this sure won’t help them. Having your chief counsel leave at this time.
https://therealdeal.com/national/2019/05/29/corelogics-chief-counsel-is-leaving-the-company-as-it-deals-with-a-doj-inquiry/
https://craft.co/first-american-corporation-the
‘Security researchers discovered nearly 900 million sensitive mortgage documents from First American Financial exposed online.’ 05/2019 / Related?
To truly meet the needs of people in underserved areas, we need to open up our mortgage finance system to more competition – because competition drives innovation.
One way to do this is for Congress to authorize FHFA to issue more GSE charters so more players can enter the industry and compete with one another.
There is already evidence that this kind of reform would succeed if enacted. Today’s reemergent private mortgage insurance industry shows a strong appetite and capacity for private capital to bear mortgage credit risk.
And as more competitors enter the mortgage market, as a regulator, my job is to create a level playing field and subject everyone to the same set of rules.
Fannie and Freddie should be successful because they have the best management, the best execution, the best business practices – not because they have the rules and regulations stacked in their favor.
Prepared Remarks of Dr. Mark A. Calabria, Director of FHFA, at HUD and NAHB’s Innovative Housing Showcase 6/3/2019
Read more:
https://www.fhfa.gov//Media/PublicAffairs/Pages/Prepared-Remarks-of-Dr-Mark-A-Calabria-Director-of-FHFA-at-HUD-and-NAHBs-Innovative-Housing-Showcase.aspx
That is just not true! What fannie and freddie need is a spanking because they are a private company, needing more regulation and oversight! They helped, with the help of Wall Street crooks to nearly crash the world economy because of their practices. They are not smart! They want to make the decision to get or not get an appraisal. They want us out of the picture. Get your head together Baggins, you sound like a fox news broken record! Financial con artist in the white house who launders money for the russians is going to remove any protections for consumers, so shut up if you don’t know what you are talking about! I am really sick to my stomach when I read a post like this; I am always hoping you will come to your senses, but I guess there are thick heads out in the middle of the country that are in denial about who is occupying our white house, and he is a total crook! And a liar, so now that he’s there it is ok to lie, cheat and do what crooks do to take everything we worked for! Get a grip! Competition is not the answer, regulation, hanging over their heads is what banks, lenders and freddie and fannie need!
@Realrose, we encourage lively debate, but ask that you be respectful of others. If you disagree with someone, please express yourself respectfully. If you disagree with an opinion, feel free to respectfully challenge that opinion. Do not engage in personal attacks (including name-calling) on fellow commenters/appraisers. Please keep it professional and conduct yourself as you would within your own organisation. Snide or rude comments are not constructive and certainly not helpful. We count on your cooperation and appreciate your support!
Regulate your competition into the ground then spy on them to build a better gadget and market it bypassing the very regs and laws you put in place
Don’t look up you’ll see a screw driver cause we’ve been screwed
Class Action Lawsuits to find experienced appraisers that are aged out in our lovely capitalist markets (without morals and unscrupulous politicians both sides)
Tick Tock
Crash into cryptocurrency