NAR Concerns & Survey on Property Data Collectors
NAR is conducting a survey and wants to know if you have any concerns regarding property data collectors, if the appraisal fees are higher since the involvement of data collectors, if borrowers are made aware of a fee for the appraisal and a separate AMC fee or were the fees bundled, if the property data collector gave the impression that they were the appraiser, whether you have any safety and privacy concerns with the data collection process, quality of data collected and whether they need to be licensed…
In a letter to the Federal Housing Finance Agency (FHFA) regarding appraisal modernization, oversight, and the use of data collectors, NAR points out that while it is supportive of modernization, a licensed appraiser is the best option. The letter points out that (1) more information about data collectors should be collected and shared, (2) a full review of automated valuation models (AVMs) is needed, and (3) more oversight of the data collected, and privacy issues should be explored.
very little is known about the testing or evaluation of data collectors used in the pilot programs by Fannie Mae and Freddie Mac or the 3-D scanning technology they use. Workers in parallel industries such as inspectors, insurance agents, real estate videographers, appraisers, or appraisal trainees might all possess different acumen that could help in data collection, but some might perform better than others and have ancillary benefits such as licensing or industry ties that ameliorate negative behaviors. Fannie Mae, Freddie Mac, and the FHFA should publish information about the quality of data collection, both the actors collecting it and the technology they use to measure properties for the industry, as well as, the Enterprises’ counterparties, like private mortgage insurers and credit risk transfer investors that depend on accurate valuation…
Supporting Consumer Protections
Consumers rely on professional valuations to validate their contract price. A contract price can be renegotiated to protect the consumer based on a credible valuation. Appraisal waivers that fail to inform the consumer of this important market valuation deny the consumer an important protection. To this end, the Enterprises should disclose to consumers that they may not be receiving a third-party appraisal when a waiver is granted and that the results of the Enterprises’ valuation should and will be provided for their use.
Furthermore, the detailed nature of 3-D scans raises questions of adequate consumer protections. Financial data privacy is being debated in Congress and this data deserves the same review. These data and recordings are first housed at appraisal management companies (AMCs) before being forwarded to the Enterprises. However, it is not clear that the same level of attention is being given to security and privacy concerns related to the detailed images of property’s inhabitants, their belongings, property access, and their security systems. The FHFA and other regulators should review the implications of third-party repositories of such data as well as its security
NAR is conducting a survey to examine the use of data-collectors. Examples of the questions in the survey included:
Do you have any concerns regarding this new procedure that involves data collectors? (Mark all that apply)
- Yes, I am concerned about privacy of the data collected
- Yes, I am concerned about the quality of the data collected
- Yes, I am concerned about the legal liability of having a data collector in my clients home
- Yes, I am concerned that this separation of data collector and appraisal will negatively affect the appraisal
- No
- Other (please specify)
How much was your client charged for their appraisal?
Was your client made aware of a fee for the appraisal and a separate fee for the appraisal management company?
- Yes, there were separate fees
- Yes, but the fees are bundled
- No
- Not Sure
Have you observed any changes in fees for appraisals since involvement of data collectors?
- Higher fees
- No change
- Lower fees
- Not sure
Did the data collection result in:
- Upgrade to a desktop appraisal
- Requirement of repairs
- Upgrade to a full traditional appraisal
- No further action
Has a data collector given you the impression that they were the appraiser or had some other role other than collecting property data?
- Yes
- No
- Not sure
Do you have any safety concerns with the data collection process?
- Yes
- No
- Not Sure
Do you have concerns regarding the data collected and data privacy?
- Yes
- No
- Not Sure
In your experience with data collection, were you made aware of any third party privacy policies or disclosures?
- Yes
- No
- Not sure
How would you rate the effectiveness of the current appraisal process that involves data-collectors gathering property data for appraisals?
- Very effective
- Somewhat effective
- Neutral
- Somewhat ineffective
- Very ineffective
How do you perceive the quality of property data collected by data-collectors compared to appraisers themselves?
- Higher quality than appraisers
- Comparable quality to appraisers
- Lower quality than appraisers
Do you think there is need for licensing or certification of data-collectors?
- Yes
- No
To take the survey click here.
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Every appraiser should blast this everywhere and RIP them….
Kinda hard to do the way the questions are worded. Plus not a single “Other Comments” offering.
In the earlier 1950’s my boss’s company had pre-verified sales info from contradicting sources. Both the FBI and the Justice department had independently verified all the recorded information from the neighborhood.
How could our little eight man office NOT. We had to do a superior job, regardless of the competence of the government agencies, we had to dig because our reputation was at stake.
When we called the principles were very attentive and told of the previous inquires.
Take the survey, share it and speak up!
I’m pretty sure that I predicted the rise of money collectors (AMCs) and data collectors somewhere between 2009 and 2011. Baggins, you’ve admitted to documenting every word that I’ve ever written. Am I correct?
What planet is this? Retired, just because you are paranoid does not mean they are not after you.
When I entered a figure over 1,000 dollars for the ‘what was your client charged’ question, the survey kicked back an invalid format response. First I tried a billion, than a million, then a thousand, and had to go a dollar shy to pass through. They provided the cert res option, but then did not provide question n/a’s or such for appraisers.
This was one of my answers, and otherwise I also included as many links to a few articles on this website in the other free writing blocks. Hopefully they’ll be more skilled at clicking web links and reading details than some here.
‘Prohibit the process. Only appraisers should inspect for valuation services, therefore there is no need for training or licensing of third party ‘data collectors’. If they want to provide valuation services in any capacity, they should hold appraisers licenses.’
It’s quite possible that the people at NAR are hopeless advocates and are not adequately informed on the issues. At this point it’s irrelevant to even have a gender question, companies should just remove that entirely.
That was one of the weirdest responses that I’ve read in years. Actually I was baiting you for one of those 25 page responses. 😉
Better luck next time.
The public is in danger of this practice! Do not a DATA Collector into your home. An AMC has hired convicted felons to do these collections.
This whole situation is going to fail and we as tax payers will be bailing out all the same banks just like before. Dumbest idea I have ever encountered in this industry.
“Dumbest idea I have ever encountered in this industry.”
I agree, and really saying something considering the US Government is supposedly protecting it’s citizens. Oh, and that FNMA thinks they know how to design an appraisal form.
NAR is never going to take a stand on this issue. They are posturing. They simply want to say they “were trying”.
In the boating world there are signals to alert other vessels. The appraisal industry is basically in a Red over Red situation. NAR doesn’t know what is going on, FNMA thinks they do know what is going on, AMCs are thinking, ‘damn… we’re loving this’.
“Red Over Red The Boat is Dead: Two red lights one on top of the other indicates the boat is unable to follow any standard rules of the road. It should be avoided. They will not be able to avoid you. Other mnemonics for this are Red Over Red the Captain is Dead. Also the less grim Red Over Red Captain’s in Bed. And finally Red Over Red Captain’s in the Head. The boat is either not under command or not able to follow the rules of the road.”
You will ALWAYS have appraisers drawn to this dangerous dead vessel. They will extoll it’s immediate gratifications and potentials as though in their small way somehow able to help right the ship.
That’s life in the big city. Always has been, Always will be.
Gladly you recognize it for what it is.
https://appraisersblogs.com/canadian-banks-will-exploit-gutted-u-s-mortgage-underwriting
Appraisal modernization has been tippy from the start.
Fannie modernization reminds me of that Swamp People episode where Big Tee came within a literal inch of a gator chomping his gonads off. He leaned far forward and pulled straight up on the taught line, the entire rear side of the boat lifted off the water, he nearly went over while the gator came straight up. Some bright ideas for how to handle complex tasks are better than others. Mr Jimmy although standing immediately next to Tee, would not have been able to save him. The sound of those jaws snapping, I actually spilled my beer.