3.6 and ACI

[chad hampton]

You think ACI (and I imagine, Alamode) can survive losing 50%+ of their subscribers overnight when "The 3.6 Abomination" hits, plus however many more leave to try newer software? I can't speak for Alamode, but I can guarantee you that ACI will be running in the RED after this shiitestorm conjured up by the GSE bureaucrats committee hits ... how long will 1st Am keep them afloat after that?

I've been wondering how many software companies will still be in business when we drop down to under 50k working appraisers, 30k, 25k?

 

[alebrewer]

I've been wondering how many software companies will still be in business when we drop down to under 50k working appraisers, 30k, 25k?

we should start a tontine...

 

[Terrel L. Shields]

I can guarantee you that ACI will be running in the RED

Then they will sell out to our favorite owner of our data, right? Soon, we probably will have about 2 choices in software

 

[J Grant]

Then they will sell out to our favorite owner of our data, right? Soon, we probably will have about 2 choices in software

Suitable for the 2 appraisers left on the res loan biz side.

 

[Terrel L. Shields]

Suitable for the 2 appraisers left

Seriously it begs the question. What is the minimum number of appraisers necessary to provide income enough for a vendor; a vendor who is dealing with increasingly complex forms and tasks dictated by FNMA. It's as if Fannie wants all the appraisers to go out of business. In fact, I think they do so they can value property via AI and all the "appraisal" fee can go to them.

 

[J Grant]

Seriously it begs the question. What is the minimum number of appraisers necessary to provide income enough for a vendor; a vendor who is dealing with increasingly complex forms and tasks dictated by FNMA. It's as if Fannie wants all the appraisers to go out of business. In fact, I think they do so they can value property via AI and all the "appraisal" fee can go to them.

IDK how many, but clearly the recent GSE decisions, from using Waiver/value acceptance (no appraisal done, no valuation done), influxing PDR "data collectors" to do the inspection part of hybrids, and other actions that they know will severely cut into the income of most appraisers doing refinance mortgage lending orders.

It is comical to see software firms and data providers promising that the increased productivity from their programs will make it up to real estate appraisers. There is a Finite number of mortgage loans being made so even if an appraiser does each one 30 minutes to an hour faster, it will not generate more business to them, and lenders will not make more $ either if they become more efficient since even if they process loans faster, it does not translate into more people buying homes or refinancing.

The term vendor applies to an what AMC calls anappraises; the AMCs are the entities that will benefit from needing fewer appraisers to do the same amount of orders since they use staff appraisers whenever possible.

 

[Terrel L. Shields]

software firms and data providers promising that the increased productivity from their programs will make it up to real estate appraisers. There is a Finite number of mortgage loans being made so even if an appraiser does each one 30 minutes to an hour faster, it will not generate more business

As my friend Ed Zaggley would say, "Exactly"

 

[Essexfenwick]

Loan officers are toast as well. Talk about an antiquated business that charges too much. Sure there will be some left just like some appraisers but the numbers will be decimated.

 

[alebrewer]

Loan officers are toast as well. Talk about an antiquated business that charges too much. Sure there will be some left just like some appraisers but the numbers will be decimated.

Sat through a demo today using AI agents to take initial loan app information - the borrowers - to the person - couldn't tell it was AI. They thought they were speaking to a live person. Combine interpersonal skills with the amount of information AI agents have at their fingertips. Traditional LO's are no match.

 

[J Grant]

Sat through a demo today using AI agents to take initial loan app information - the borrowers - to the person - couldn't tell it was AI. They thought they were speaking to a live person. Combine interpersonal skills with the amount of information AI agents have at their fingertips. Traditional LO's are no match.

I disagree. Just because an AI agent can be programmed to take loan app info does not mean borrowers want that - and a demo is curated to work perfectly. In a real-life scenario, if a borrower asks the AI agent something different and the AI can not handle it, watch it all go south.

People dealing with large amounts of $ and uncertain outcomes such as a mortgage loan or home purchase like to deal with other people. There is more to getting a loan approved and a sale made then it looks- buyers and sellers are nervous and often have complex needs, such as selling their present house. I used to sell RE back in the day.

Plus the overlords never pass on the tech or labor savings to the consumer, or if they do it is crumbs - they simply keep more profit. ant tr