Appraisal Scoop

Review: eTrac Webforms - Is free really free?

Working RE Magazine recently featured an announcement that eTrac, an online web based appraisal management system, is offering appraisers an opportunity to sign up in the eTrac network for free.

FREE is always nice, right? So I signed up and began exploring some of eTrac’s offerings. The website states:

"The eTrac Network is designed to provide mortgage brokers, lenders, BPO management companies and consumers with access to qualified real estate professionals. The network can be accessed directly from our website at no cost or from within our management products. eTrac Enterprise Edition or OASIS for lender users have direct access to the entire network of real estate professionals. The system allows users to efficiently find, assign and receive services from thousands of qualified real estate professionals nationwide."

I am not sure, but it would appear that if you don’t have an eTrac website (pricing starting at $199/year) – how would you complete and send reports to the client ordering through the eTrac network?

My next stop was checking out the eTrac “Webforms” module. Another quote from the eTrac website:

"eTrac Web Forms is the newest way to produce your appraisal reports- entirely online, allowing appraisers to be completely mobile and autonomous. This unique approach to delivering software as a service will give appraisers what they really want- a simple solution that will work on their Windows PC, their IMAC, their iPhone, or any Internet browser based. No installs, no PDF drivers, no hassles. "

I found that eTrac offers the Webforms “lite” version for free. You can create new files and send them right from the web. The only limitations they claim for the free suite, is you can only access the last 20 files you create. You must upgrade to store more than 20 files. You can see it at http://www.appraiseanywhere.com.

See eTrac's Response to this review: Click Here

Click here to continue reading. . . .

The End is Just the Beginning - Virginia REAB Hears Petition To Prohibit Use of Appraisal Delivery Webportals That Transmit Altered Appraisal Reports

Appraisal Scoop reported previously (click here) on the May 22, 2008 Virginia State Board for Real Estate Appraiser's (VREAB) meeting to discuss among other things, a petition submitted by George Dodd, SRA.  Click Here to: Download Virginia_Appraisal_Board_Petition_052208.pdf

The petition was written to prevent online sites, or web-portals from changing or otherwise altering reports that appraisers prepare.  Web-portals would include such companies as: AppraisalPort, RELS, and other AI ready required companies. It also seeks to limit the illegal PDF stripping down, and programs that erroneously copy information from reports such as Lighthouse.

Click here for Part 1 and for Part 2 and for Part 3

August 19, 2008 - Legislature and policy is one of those things that can baffle most people. I know that sometimes I can get downright angry at the inefficient ways government can work sometimes. Here we all are in Richmond, VA, the front lines to the fight for appraisal portal conversions.

On the 19th a decision was to be made as to whether or not appraisers were to be allowed to continue to do business with companies that require reports to be converted to formats that were not the true copy of the appraisers report. A victory would not be had by either side of this fight .

Neil Olson, Chief Legal for FNC, Inc was there to give presence to the companies who want to continue to require appraisers to submit limited reports. * See comments I once again applaud Mr. Olson for being the lone offense, as no one from First American was there, no one from Lighthouse, no one from any other company that would be even slightly allied with FNC’s struggles. There were no lenders there to support Mr. Olson’s claims from the lender’s side. Without a lender there to agree this is the only way they want these reports, Mr. Olson appears to be painting with broad strokes when he insists they do.

George Dodd, SRA was there to thank the board for their time looking at and considering his petition. This same petition asked that no companies that required the practices of conversions of reports be allowed to do business in the Commonwealth of Virginia.

The committee was required to recommend that the petition be rejected. It was simply not written in such a way that was enforceable. The petition sought to limit an industry that it did not oversee. The Board’s opinion was to leave the committee open to further discussion and allow it to look even deeper into the entire process.

Mr. Dodd humbly accepted that decision, as if he knew it was coming. He seemed pleased to get the opportunity to continue on to help shape what is ultimately going to be an important step in the re-establishment of appraiser’s independence.

Over the last several months there are some things that should be taken into account that cannot be just coincidence. When the Board originally met in the late spring I began this series of stories. The first one seemed well received. The second one was followed by something I did not expect. Within a day of the second story being published Fannie released a statement:

"Since relocating our appraisal ordering process to AppraisalPort in April, we have discovered limitations within various appraisal software providers using the AI Ready format when trying to send the level of documentation that the NUC requires."

I have no clue if yours truly had anything to do with it. I do hope that I had a small part in it. Within this same time frame AppraisalPort released something that they had never offered prior in their previous several years of operating. They finally made a PDF converter available for their ENV format.

Click here to continue reading . . .

UPDATE! - Appraiser Organizations Call For Reform Following AP Story

"Four national associations of real estate appraisers have asked Congress* for major regulatory reforms in the wake of an Associated Press investigation that identified key failings within the existing system."

*Thanks to Scott Austin, Austin Appraisal, LLC, I now have a copy of the letter sent by the AI, ASA, NAIFA, and ASFMRA

Download AI_ASA_ASFMRA_NAIFA_Response_Letter_AP.pdf

Naturally . . .the organizations suggest that the use of designated appraisers from a nationally recognized professional appraisal organization " . . .would help mitigate concerns about appraiser involvement in mortgage fraud. 

But they go on to specifically address Title XI which, " . . . has several structural deficiencies that we previously identified, which are highlighted in the Associated Press article, as follows: "

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"What if" ... Oh the Possibilities!

AUTHOR:  Patrick Egger is a Certified General Appraiser located in Las Vegas, NV. He teaches continuing education classes on the housing market, appraisal issues for real estate agents and appraisers. Click on Outside The Boxes for a collection of Patrick's articles on Appraisal Scoop!

In the The Right Start I talked about a few "what ifs" and my grand scheme to change things. The real questions for many appraisers was "is this doable" and if so "why should I as an individual get involved"? Essentially, what’s in it for me since it will take a lot of "collective effort" to get it going along with perseverance and patience.

It doesn’t take much of an imagination to conjure up a "few perks" that "the association" may yield but to satisfy idle curiosities, here are a few things to think about.

Data and Map Sharing

While we have public non-disclosure rules, what are the rules for a shared database via a professional association?

• Could key data from appraisals be shared among members of the association?
• Would verified data in non-disclosure and disclosure states make a difference in your everyday work?
• What other information could be shared such as market graphs, map mash-ups (see Windows Live Maps) with data overlays for neighborhoods where members could link and share map data, builder brochures, hazard locations, etc.?

Does a national level database make sense?

If say, 25,000 appraisers join "the association" and contribute data, maps, etc., are there users outside of the association for parts of these products?

• Verified sales data base.
• Shared graphs on neighborhoods trends, etc.
• Market reports sold to real estate agents.
• Real estate maps with hazard layers, neighborhood information, graphed trends, etc.

There are many websites providing market data that is misleading. Does a "realty reality" based website make more sense to those looking to finance purchase or sell a home?

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Zaio 2nd Quarter Results Are In! John Ross Joins RICS

Zaio has released their second quarter financial results for 2008 and opened with a positive statement by their CEO, Douglas Vincent:

"The Company reported record revenues and made significant progress with its proprietary technology development during the quarter," stated Douglas Vincent, CEO. "Zaio was pleased to announce the successful implementation of this technology in July as initial Zones were brought to "Live" status. The Company is now focused on leveraging this leading-edge technology across the more than 1,700 zones which we have sold to date, providing a national footprint for Zaio's Z products."

However, all is not a bed of roses for the company.  According to their press release:

Zone sales have been lower than expected this year due to adverse conditions. The lower than expected zone sales have had an impact on the Company's cash resources available for its national database expansion. As a result, the Company has made strategic decisions to concentrate its cash resources largely in the areas where zones have been purchased and paid for in accordance with the terms of the applicable license agreement.

In addition, the Company has been taking measures to reduce overall selling, general and administrative costs by taking advantage of operating efficiencies achieved as a result of advances in technology over last several months as well through the elimination of any redundancies which have been identified relating to the five acquisitions made over the past fifteen months.

"Readers are cautioned that the total remaining costs to bring a substantial number of the sold zones to live status over the next 12 months exceed the Company's current available cash resources. "

Continued operations are dependent upon the Company raising the necessary funds in the senior debt markets, subordinated debt markets and equity markets, and increasing sales and achieving profitability, but there is no assurance that this will occur.

"Accordingly, there is uncertainty regarding the Company's ability to continue as a going concern. " Source: Zaio / Yahoo

The Company continues to actively pursue all various financing alternatives available to it. Management also continues to explore opportunities to align with potential strategic partners in the valuation industry and will consider further acquisitions that allow us to penetrate our various markets sooner.

Click here to continue reading . . .

Appraiser Organizations Call For Reform Following AP Story

"Four national associations of real estate appraisers have asked Congress for major regulatory reforms in the wake of an Associated Press investigation that identified key failings within the existing system."

Click here for the complete article!

Related Stories:

• Inflated appraisal nearly cost family its home
• Tenn. official disputes appraisal records
• Federal News Radio
• Lawmakers pledge push for appraisal reform

AP Now Blaming Unscrupulous "Rogue" Appraisers for the Mortgage Mess

The second article in an investigative series [Lawmakers pledge push for appraisers reform], by Pulitzer-Prize winning author Mitch Weiss quotes Bob Casey, D-Pa spokeswoman:   

"Sen. Casey believes that a disturbing byproduct of the increased rates of foreclosure, as shown by these AP stories, is an increase in the number unscrupulous individuals who corrupt the appraisal process to artificially inflate home prices to increase profits by cheating home buyers," said Casey's spokeswoman, Kendra Barkoff.

Mel Martinez, R-Fla is also quoted in the story:

"Appraisal fraud significantly contributed to the current problems in the housing market, including a substantial number of foreclosures," Martinez said. "There's currently no civil penalties for appraisal fraud - and that has to change."

Click here for the complete article: Lawmakers pledge push for appraisers reform

Waiting For HVCC Results - Will It Be Our Final Hour OR Our Finest Moment?

AUTHOR: Micheal W. Armentrout, VP AM Appraisals, Inc. Mike has been involved in full time real estate valuation since early 1992 and has experience in numerous Central Ohio markets.

As the clock ticks down on the final outcome of the HVCC, appraisers anxiously wait to see how the implementation of such sweeping reform will affect their businesses. In recent months we have no doubt seen, read, and heard untold numbers of opinions and viewpoints on the OFHEO/Fannie Mae proposal.

After reserving judgment for quite a while, I have concluded there is very little that would be beneficial from such a measure. Though I am sure the goal may be noble, ending pressure on appraisers can never happen. Simply by nature of what we do, almost everyone has an opinion or unspoken desire for a specific result in an appraisal. Yes, mortgage brokers and lenders have had their share of unscrupulous snakes in the grass of whom we can all share stories but while HVCC attempts to cut off that threat, will it control the calls from homeowners, sellers, buyers, realtors, disgruntled investors, divorcees etc. etc.? We don’t seem to hear that auctioneers, antiquities appraisers and other value estimators have the same concerns even though their businesses could be hurt by unhappy recipients as well.

Loan officers indeed do have a biased interest in a specific outcome of an appraisal but why should that disqualify them from ordering it?

Do we get upset when an attorney in a divorce case wants an appraisal even though his/her client can be dramatically affected by it? Simply ordering an appraisal does not imply undo pressure but even when pressure does come from subsequent communication, are we saying “we can’t handle the pressure and feel like we must cave to their demands”? I trust that the majority of appraisers are stronger than that and for those who aren’t, please find another job.

I must confess I cried the same woe of lender pressure for many years but I was never afraid to say “No” because I was not willing to lose my livelihood in this business due to poor appraisals. Integrity and moral character aside, the thought of legal and financial liability along with lender approval was more than enough to keep me on the straight and narrow.

Click here to continue reading . . .

Mortgage Fraud and crooks in banks? I'm Shocked!

Author: Mark Wahlstrom, President of Wahlstrom & Associates, specializes in settlement planning, structured settlement annuities, settlement trusts and insurance planning. Mark's offices are located in Scottsdale, AZ and Boston, MA.   Mark provides articles and commentary of interest to attorneys, paralegals, judges and settlement professionals all over the United States.

His most recent blog article Mortgage Fraud and crooks in banks? I'm Shocked! was triggered by today's online editon of the Wall Street Journal story - FBI Probes Unusual Incentives for Home Buyers.

In his article he describes how virtually everyone in the booming southwest knew of various schemes to pay off buyers car loans, credit cards, and student loans (so they could qualify for larger loans)  . . .but now act shocked!

"The builder however, who built the house on land he bought years prior at cheap prices, flips a property and books a big gain, the broker gets a huge commission on the inflated mortgage loan, often at a higher then normal commission rate as a pay off to look the other way, and the appraiser goes along for the ride as he can plausibly say that "comps in the area" are consistent with the price."

Mark concludes - "If you are in the settlement industry I'd suggest you sharpen up on the mass tort and non-qualified structure area as we are going to see a massive wave of litigation tied to the billions of dollars in losses from these types of criminal lending practices."

Source: Click here for the complete article.

Mark Wahlstrom, President of Wahlstrom & Associates, one of the nations premier specialists in settlement planning, structured settlement annuities, settlement trusts and insurance planning.
Mark's offices are located in Scottsdale, AZ and Boston, MA.

Six-Month Associated Press Investigation - Real-estate appraiser regulation is a failure!

It's finally here.  The story that Pamela Crowley has been talking about for months was released by the AP this morning.  This, the first in a series written by Pulitzer-Prize winning author Mitch Weiss for the Associated Press says:

" . . .a six-month Associated Press investigation found that the system is crippled by both the bumbling of its policemen and their inability to effectively punish those caught committing fraud."

The appraiser's thread on the Appraisers Forum.com back in January said: "I spent two hours with the Associated Press writer today. His name is Mitch Weiss (awarded the 2004 Pulitzer Prize winner for Investigative Reporting).  He is doing a national story on appraisers, appraising, pressure, mortgage fraud, appraisal boards and I suppose related topics."

According to the article, "The AP conducted dozens of interviews and reviewed thousands of state and federal documents . . " in preparing this series. 

For the most part, I don't think that appraisers will find anything particularly shocking or new in this article, but insiders tell me that future articles in this AP "Impact Story" series will be BOMBSHELLS!

Click here for the complete article

Related Stories:

• Inflated appraisal nearly cost family its home
• Tenn. official disputes appraisal records
• Federal News Radio
• Lawmakers pledge push for appraisal reform