Property Valuation and the Future of Data Collection
Property data collection has quietly become one of the most consequential shifts in modern real estate, reshaping how lenders, AMCs and national platforms gather the information that ultimately determines a homeowner’s equity, a buyer’s loan terms and the integrity of the appraisal process itself. Yet most consumers have no idea who is actually walking through their home, measuring rooms, photographing conditions or documenting features. In many states, the answer is startling: no license, no training requirement, no background check, no oversight, and no accountability.
The Virginia Real Estate Appraiser Board’s Emerging Industry Issues Committee is taking a hard look at this rapidly expanding practice, and for the first time, is asking appraisers, regulators, realtors, homeowners, lenders and anyone with a stake in property valuation to weigh in. The Board has launched a statewide survey, Property Data Collectors: A Survey of Regulatory Agencies and the Appraiser Industry, to gather real world experiences, concerns, risks and recommendations as it evaluates whether property data collectors should be regulated or licensed in Virginia.
This conversation is overdue. Across the country, stories have surfaced that highlight the risks of an unregulated workforce entering private homes and producing data that directly affects lending decisions. One AMC hired a convicted felon to collect interior property data. Another case involved a property data collector whose inaccurate measurements derailed a transaction. In yet another, a homeowner discovered that the person photographing their home had no identifiable credentials, no license, and no accountability if something went wrong. These are not isolated incidents, they are symptoms of a system that has grown faster than the guardrails needed to protect consumers.
The survey Virginia is circulating digs into the core issues: how states define property data collectors, what activities they perform, whether they should be licensed, what risks exist when they are not, and whether appraisers should have supervisory authority when relying on their work. It asks whether consumers should have the right to choose who enters their home, whether disclosures should be required, and whether liability or E&O insurance should be mandatory. It also explores the broader industry landscape, how common property data collectors have become, which sectors use them most, and what complaints or enforcement actions have already emerged.
This is not just an appraisal issue. It is a consumer protection issue, a real estate industry issue, and a community issue. Anyone who owns a home, plans to buy one, works in real estate, or simply cares about the integrity of property valuation has a stake in how Virginia approaches this question. The data collected today will shape tomorrow’s regulatory framework, whether that means licensure, registration, employer oversight or something entirely new.
Your voice matters here. Whether you have encountered property data collectors firsthand, have concerns about consumer safety, believe they should be trained and regulated, or simply want transparency in who enters a home during the mortgage process, the Board wants to hear from you. This is your chance to influence policy before decisions are made.
Take the survey, share it with colleagues, send it to friends and neighbors, and help Virginia build a regulatory approach that protects consumers, supports appraisers and strengthens trust in the valuation process.
- Property Valuation and the Future of Data Collection - July 29, 2026
- The Appraisal Fee Lawsuit AMCs Can’t Outrun - July 24, 2026
- The Board Has Spoken, and AMCs Should Pay Attention - July 6, 2026
The high costs of cheap appraisals.
https://appraisersblogs.com/systemic-failures-in-fha-appraisal-n-loan-review/
Lyle Rieke with FANNIE would have you believe it is all about the number – Professionals must speak loudly and say IT IS NOT! It is clearly about collateral verification. Why? Because that is what gives confidence to the buyers of mortgage portfolio paper. I though we learned that in 2009. By way of example – the head of Servicelink quality control just went on in video about the new age of analytics, but knows full well that C3/Q3-C4/Q4 is binary and erratic. They have NOT changed that. A third grade math teacher can explain why their algorithm can not work.
I will never complete an appraisal where data is collected by someone else most likely an Uber driver and put my name on it. The AMC‘s are ruining this business.
Dean Mazzotta SAME!
Fannie today reported net revenue for last quarter to be $4 billion. You think anything is going to stop that? You’re delusional.
So you’re o.k. with sending unlicensed individuals into peoples homes? Gig workers? As a consumer I object.
The delusional people here are those whom have unjustly enriched themselves at other peoples expense and risk.
You’d never support pdc’s and valuation waivers if your company was lending it’s own money. If there was no taxpayer back stop. There is only so much room to bury never ending QE in the housing market and we’ve long since exceeded that point. We’ll never have stable markets again.
It’s time for the FHFA to revoke the GSE’s charters and wind them down. The conversation is not going away. Only a matter of time before the bubble pops again.
https://www.cato.org/briefing-paper/gse-experiment-has-failed-congress-should-end-it
https://appraisersblogs.com/fannie-mae-fraud-and-abuse-exposed/
Current status of GSE managers; Tap dancing on a bubble, cigar and whiskey in hand.
He was simply saying that the money is so big that we (appraisers) don’t matter. That’s my take.
Well he’s right in that regard. These institutions throw their weight around and form rules and regulations that fits their business interests. Chartered institutions like GSE’s are supposed to be accountable to the people as well, not just ‘stake holder interests’. Central planning never works.
I took the survey and I am vehemently opposed the property data collectors and hybrid Appraisals. But I found one of the first few questions strange- it asked me if collectors were required to be licensed in my state. 
Why ask for a fact, based answer in a survey? 
Shouldn’t the question just have been “do you think data collectors should be required to be licensed?”
There is no logical reason for “data collectors”. We already have them, they are called licensed/certified appraisers and appraisal trainees. If the cheap AMCs would pay a reasonable fee-it might work. I know I would never put my signature on a report where some unknown person collected that data. Nope. Not happening. This is the perfect fit for the use of trainees-when they are properly trained by their supervisors-and the supervisor completes the appraisal.
Donna please consider the primary benefit of amc’s circumventing the use of licensed appraisers wherever possible. They skirt regulatory oversight because state appraisal boards only have jurisdiction over appraisers and appraisals. The state boards do not have jurisdictional oversight over activity an amc engages in which does not involve a licensed appraisers participation. That is how and why the PDC program was dreamed up in the first place. To skirt regulatory oversight and also used as a mechanism to rake an even greater portion of the ‘valuation services’ fee. Eliminating the full service licensed appraisers participation is basically most amc’s primary motivation at this point. Consumer protection be damned, dollar signs in their eyes.
The amc is legally defined as an agent of the lender, so oversight of non appraisal activity falls on the lenders, which they’re obviously not providing adequate oversight either. For every lender that takes advantage of this regulatory work around they gain additional market share advantage over the few remaining lenders whom provide traditional full service appraisal in the interests of more stable and reliable loans. Why should they care anyways, taxpayer backs the entire thing up and there is untold risk and inadequately capitalization all around. The attrition continues at a rapid pace. The every day home owner and mortgage lending consumer is and will continue to be the most harmed.
The appraiser registry operates as a federated system, meaning central oversight cannot override the sovereign licensing authority of individual states.””Because credentialing is structured under a federated framework, federal entities have monitoring privileges but lack the power to dictate autonomous state board decisions. BIG mistake now they can not undo it! Explain to your clients and AMC’s that Errors and Omissions (E&O) insurance will not automatically cover claims arising from a delegated third-party property inspection because the insurer’s risk assessment is tied exclusively to the named appraiser’s licensed credentials and direct personal oversight. This is not rocket science!
The insurance tie in. Excellent analysis. We should write our EO insurers and ask for them to publish specific guidance on the matter. (edit – But it appears you’ve provided that answer…) The issue is further complicated by companies like OREP providing insurance to both appraisers and appraisal management companies under umbrella policies. These represent conflicts of interest that in the legal world, one imagines could get their own lawyers in trouble. Representing both sides of a claim without clear designation who’s covering the PDC that both parties relied upon. This industry has become so backwards. Amc’s ruined everything.
Errors and Omissions (E&O) insurance will not automatically cover claims arising from a delegated third-party property inspection because the insurer’s risk assessment is tied exclusively to the named appraiser’s licensed credentials and direct personal oversight.
I’m going to put that specific line in the survey response. And who’s going to cover the home owner if the PDC individual really does break the rules? Steals something, breaks in later, misuses personal data?
Yet I get asked to submit a background check for these stupid AMC’s
Fannie Mae’s decision to accept collateral data from unlicensed property inspectors represents a clear operational overreach that actively conflicts with its foundational charter. The FHFA’s core directive to the Government-Sponsored Enterprises (GSEs) is to maintain a safe, sound, and liquid housing finance market. By institutionalizing a framework that cuts state-licensed, financially liable professionals out of the physical verification process, Fannie Mae is introducing unquantifiable credit risk into the secondary mortgage market—subverting the very safety and soundness it is mandated to protect.
Background checks are a corporate policy shortcut; they are not a legal substitute for the statutory enforcement, bondability, and consumer protection provided by the federated state licensing system
David thank you for being here and posting. Excellent.
I’m pretty sure that HUD will be doing the same thing by way of the contradictory executive order to modernize the appraisal process. Because nobody knows what appraisal modernization should really mean, because the effort is not actually helpful or necessary in the first place, what we get instead is the elimination of tried and true checks and balances systems, no more full service appraisals.
What’s your take on this one? Inquiring minds want to know. 03-2026 Executive Order on promoting access to mortgage credit.
https://www.whitehouse.gov/presidential-actions/2026/03/promoting-access-to-mortgage-credit/
A few notable contradictions;
(i) modernizing appraisal regulations and guidance to expand the use of alternative valuation models, desktop and hybrid appraisals, and artificial intelligence valuation tools;
(i) aligning appraisal standards between the Federal Housing Administration and VA Home Loan Program where risk is comparable;
If they were to honestly measure risk between FHA vs the VA, FHA would need to adopt the VA model of C&R fees, an FHA/HUD ran appraisal administration program where no amc’s would be involved ever again, and rotational assignment to all approved appraisers. That would mean no more secret appraiser blacklisting by way of fictitious performance grading. No more grossly disproportionate assignment trends where preferred appraisers get the lions share. No more picking the cheapest and fastest appraisers. No more pilfering the appraisal fee with amc junk fee raking. No more free rides for the amc executives. A clearly set fee and turn time for everyone on panel. Full service appraisal would once again become the status quo. The possibility also exists this EO could break the VA model as we know it now and amc’s would commandeer then pirateer that realm as well.
An honest appraisal modernization effort would need to take everything back to before amc’s as a baseline starting point. Which is what the VA panel still reflects to this day.
Missing the IVPI Proposal yet?
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf
Fannie claims that they’re educated and well trained. LMAO!
The language is deceptive and misleading to consumers and lenders alike.
Certified property data collectors.
Search this term; Become a property data collector. It’s the wild west of ten dozen different ‘certification avenues’ out there. I recall previous research, some of them allow people to submit their own records checks. I remember that because I posted a parallell story of this ring of people whom the feds busted for having provided falsified records checks and other documentation for the past decade.
Search this term; falsified identity document statistics.
https://sumsub.com/newsroom/synthetic-identity-document-fraud-surges-300-in-the-u-s-sumsub-warns-e-commerce-healthtech-and-fintech-at-risk/
while synthetic identity document fraud rose by over 300% with attackers exploiting generative AI to create fake passports, IDs, and biometric data.
Sumsub analyzed millions of verification checks conducted on its platform between January and March 2025 across industries such as fintech, e-commerce, healthtech, and edtech to uncover emerging fraud trends. One of the most pressing concerns is the rise of synthetic identity document fraud, where criminals use AI tools to generate fake identity documents such as driver’s licenses or passports. These synthetic identity documents are often realistic enough to bypass basic KYC checks, posing a significant challenge for businesses. Unlike synthetic identities, which involve the creation of entirely fake personas using a mix of real and fabricated data, synthetic identity documents refer specifically to falsified documents or images generated by AI. Fraudsters then use these AI-generated visuals to open accounts, conduct illicit transactions, or bypass compliance processes, making detection increasingly difficult without advanced verification tools.
https://tampercheck.ai/blog/forged-id-fraud-industry-impact
Every day, forged identity documents are submitted to lenders approving mortgages, hospitals issuing prescriptions, landlords vetting tenants, employers hiring staff, and government agencies distributing benefits. The document might be a driver’s licence with an altered date of birth, a passport with a substituted photo, a national ID with a changed name — or an entirely fabricated credential that has never belonged to any real person.
The methods are increasingly cheap. AI-assisted document editing tools can produce a convincing fake identity document in minutes. Online services sell forged IDs for as little as $20–$50. And the majority of organisations accepting these documents digitally are running verification workflows that weren’t designed to catch them – workflows without a document fraud detection layer.
This is not a single-sector problem. Forged IDs are the entry point for fraud, benefit abuse, credential misrepresentation, and regulatory evasion across every major industry.
_____________________________________
I could post material like that All. Day. Long. Sort of different than dealing with a licensed appraiser whom has gone through the fingerprinting process. You can go online and get a fraudulent document for less than fifty dollars if you know where to look. It is only a matter of time before professional thieves and gangs exploit the PDC program to gain tactical access to peoples private spaces or worse, if that has not already happened but is not yet widely publicized.
Try this -“Regarding the request for a private background screening, I must respectfully decline to participate. The real estate appraisal profession operates under strict, federated state-police power to ensure market integrity. Conversely, the commercial screening market is largely unregulated, leaving sensitive professional data in the hands of unqualified, third-party data aggregators. Submitting to these unvetted, private screenings introduces a severe data privacy risk and an inverted accountability model—where a state-regulated professional is forced to trust an unbonded vendor. I rely exclusively on my state regulatory board and the ASC National Registry to confirm my background and active professional standing.”
I hope everyone takes the survey. They NEED this data. It is proof for them why it isn’t smart. They are asking for the data Nationwide.
With something like 1,600 classroom hours of property inspection, why on God’s green earth would I EVER consider relying on some other “person” to provide inspection/measurement data to me?! I’ve taken the actual property inspection classes that licensed property inspectors have to take. I’ve read the appraisal books on property inspection. I’ve taken classes from Haag Engineering on property damage inspection from roofs, structural, electrical, foundations, wind, water and earthquake damage, lightning damage, etc., etc., etc. Taken all of the measurement courses. Seems to me that Fannie is doing little but creating more problems, more contention, more duplicity, more liability for the appraiser.
Data collection actually seems to be more profitable after expenses and offer far less liability than the position of certified appraIser. I expect more and more appraisers to walk away from appraising and take on these gravy jobs.
Hell, this is your chance to get back in! You could walk through and totally invade peoples private spaces and feed 3d modeling to unaccountable third and fourth party overseas data processing companies for an easy $100 a pop. Liability free work! Retired this is the moment you’ve been waiting for don’t miss your chance! lol. These threads are never complete until you stop by. We’ve all grown to love retired appraiser, you’re the best sincerely.
Did you read the argument against free housing for homeless, the ‘feral humans’ argument? That was really good, was going around this week. They’re not homeless because they don’t have homes. They’re homeless because they have too many personal problems. They don’t need free housing, they need lifelong counseling or to be committed in mental institutions or attempted reform in jails. I can think of a few psychotic managers in the lending world whom might qualify for those programs. Their greed caused much of this in the first place. The price of housing is too damned high.
I predicted the rise of data collectors (as a joke) around 15 years ago but never gave it another thought. I was amazed yesterday when I learned of their pay scale. I assumed they were getting $25 to $40 per assignment. It appears to nearly be a living wage from what i am seeing. Couple that with an aging group of appraisers, new forms, and social security checks and you’ll see more and more appraisers jumping ship for the easy money. I’ve been out nearly 20 years and I could still inspect a 10,000 sf home with one eye closed. Some things you never forget. I’ll take a pass on data collection for now but I still have a strong desire to hold the title of “Last Appraiser Standing”.
I am amazed they haven’t created a certified inspection requirement for these guys. Our states are slipping when it comes to scheming up new ways to raise money.
Interesting story on the homeless. I haven’t heard that story prior to your post.
https://xcancel.com/Devon_Eriksen_/status/2082285682622349520
Here you go. If you want true X, just retype xcancel.com to x.com / Clever online utilities to get full X experience without a login.
Just like appraisal modernization. People whom don’t understand what valuation is are not fixing anything with appraisal modernization. They do not understand the problems with this industry therefore are incapable fo fixing any short comings.
It will be interesting to see where the residential appraisal world is within 12-months. Maybe Baggins can devise an annual state of appraising assessment to compare year to year to see if we have gained or lost ground..
Thanks. Regrettably, I’m next in line to leave. I”m sort of on activist auto pilot at this point. Small business appraisers lost. We have no effective representation. I’m giving it up one of these days. Will push a few more articles in the meantime. Thanks.
Your well reasoned voice will be missed when you do shut things down.
It has been very sad to watch the appraisal profession be destroyed by power hungry idiots. Also, I have seen to many local appraisers get sucked into the nasty deceptions – some of whom are on our state board. Yuck!!!. This destruction is/will continue into all facets of appraising and other professions.
Baggins – A well deserved thank you for your considerable time and effort in trying to bring all involved to their senses. Best wishes for your future endeavors.
Awesome, thanks. Appreciated. I’m still around for a while, we’ll see how long. What more can be done? The people in charge of the appraisal industry have undeniable conflicts of interests with the amc industry. The guy at ARCC said a completely new regulatory structure is needed. They don’t solve the problems in this industry because they don’t want to solve the problems in this industry. I’m going to write a good letter for the VA board here soon. Don’t forget that’s the primary point of this article. We need to support PDC licensing programs. We provided never ending sensible objections to PDC programs in the first place. They did not listen. Maybe at the state level some regulation for PDC’s will help dial some of this nonsense back. As a consumer I object to a lender sending an unlicensed PDC inspector to my house. Everyone I talk to agrees they don’t want the same person doing door dash inspecting the inside of their home. It’s incredibly easy to falsify documentation too, they’re not required to be fingerprinted like appraisers are. I’ll never refinance again and it’s going to become really difficult to find homes that have not had invasive 3d scanning as well. The entire effort is a totally misguided waste of time and violation of both consumer protection principals and consumer privacy.
I learned that the term ‘Property Data Collector’ is a broadly used term that is used to describe many full time employment opportunities. Property data collector is a common working description that is broadly used throughout several industries and is non descript, and not an appropriate or sufficiently descriptive label for someone whom specializes in inspecting and documenting residential property for the purpose of mortgage lending and assisting licensed appraisers.
To conclude this point, state regulation proposals may consider clearly defining the scope of the regulation specifically for mortgage lending or relations to valuation service, somehow define the licensing as for the service being in relation to matters of real estate sales, refinances, being relied upon by realty agents, mortgage brokers, appraisal management companies or appraisers.
Is the motivation in moving to a PDC program to circumvent existing regulatory oversight and guidelines? Similar to how existing regulatory structure was developed before amc’s dominated the market and is now subsequently inadequate to provide effective oversight of amc’s, so does the GSE PDC program mirror this situation as existing regulation is insufficient to effectively oversee property data collection services for lending purposes. Appraisal management companies specialize in sending as much work as possible to non licensed individuals in order to avoid regulatory oversight.
One also ponders if tying additional rules to currently licensed persons may be as effective if not more than a PDC licensing program. Maybe a combination of adding to existing rules and PDC individual licensing.
Such as; if the licensed person or company utilizes a pdc for lending purposes, they shall verify and comply with the following rules;
1. Fingerprint requirements. The pdc has undergone a fingerprint check similar to existing residential appraiser requirements, Held on file at the state. PDC person must go to approved state locations and can not source a fingerprint compliance from elsewhere.
2. Insurance requirements. To be submitted for filing and record retention at the state, (insert proper language for relevant liability insurance minimums.)
3. The company or entity hiring or contracting with the pdc shall carry an additional bonding requirement of;
4. Prescribed rules for pdc compensation similar to appraisal programs, 30 day payments, etc.
5. The company or entity hiring or contracting with the pdc shall have available for review, their current oversight and dispute management process and policies.
6. The company or entity hiring or contracting with the pdc shall have available for review, their current policies on protecting consumers data relevant to GLB and individual consumer privacy rules. Specifically describing how PDC data is held in compliance and stated policy for violations and enforcement. To include data breach management, disclosure and handling. (FTC classified appraisers as banking institutions as a way to incorporate minimum data security and data breach transparency and reporting to appraisers several years back, the same principal should apply to PDC’s.)
7 Continuing education requirements for PDC persons.
8. Annual renewal requirements for PDC persons.
9. Additional consumer tools so consumers can demand and verify 3d mapping data of their homes has been erased after it’s useful life, which would be when the loan closes or within six months of an origination not taking place. This policy would include verification any other company whom received consumers personal data would also erase that data. To include prohibitions on selling or sharing protected consumer data to data brokers, AI systems, or otherwise.
There needs to be a better focus on consumer protection, consumer data privacy, consumers dealing with insured recognized contractors, consumers ability to prevent long term data use for what is obviously too much and unnecessary data capture of their private belongings and personal spaces.
Far more strict validation program than merely sourcing a records check from a third party company. Tens of millions of people and more, have easy access to fraudulent data and stolen identities. People can buy a fictitious identity online to pass a records check with associated physical documents. These people could pass the third party records checks, but could not pass both the records checks and the fingerprinting identity verification and more detailed records check requirements of the state. At a minimum, all PDC’s should have to undergo a fingerprinting process. Fraudulent identity use is at all time historical highs worldwide. To omit fingerprinting is intentional negligence.
VA PDC survey question #4 was a real chore. How am I supposed to know these things?
4.
Does your state currently require property data collectors to be licensed, certified, registered, or otherwise regulated?
Otherwise, filled that out for you. Thanks, hopefully something good comes of the effort.
https://forms.cloud.microsoft/Pages/ResponsePage.aspx?id=qeUKYsFOoE-GQV2fOGxzCb0GXzxHRe9Otpktx9IPnt1UQ0IyNkZCTEQ4NEUzUUJLNEoySUFNSzNFMS4u