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20 Minute AI Appraisals Are Coming

George Hatch said:
We've been over this 100 times. At that industrial scale ABC bank competes for the same deals with XYZ bank across the street. If XYZ can deliver for $25 less in fees then that gives them a competitive advantage. ABC's alternative is to either compete on similar terms or to just cede the business to their competitor. Because if ABC won't do it their borrower will just go find XYZ who is doing it.

Sounds exactly how a large percentage of appraisers compete with each other for the AMC assignments, doesn't it? That's because it is similar.

Since you are constantly reading to respond and seeking the exception to the rule as if that is a meaningful response, I have to qualify the generalization. As a group and in most cases cases an ABC operating at the industrial scale is generally decline to hold the line for the sole purpose of making their fee appraisers happier. If it were otherwise nobody - including you - would be constantly complaining about the high percentage of AMC users.
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Having worked with mortgage lenders back when I was a RE sales agent ( we shared offices with one ) and as an appraiser, ( I shared an office with one at one point as well.) you are misreading how borrowers choose a lender.

A ggow will not choose a lender because they charged $25 less for an appraisal ( and if the $25 really mattered, a lender would be happy to make up the difference )

A borrower chooses a lender for many reasons - sometimes it is reputation, or the borrower banks with them, sometimes it is points and fees ( the major fees are thousands of $ in points and originatin fees) or the interest rate, or who can work well with the borrower's particular situation.
 
It wasn't that many years ago the Lending Tree started running their TV ads in heavy rotation "When banks compete, you win". THEY were pitting the lenders against each other.

That personal touch in SFR lending has all but evaporated. Overtaken by events. Same with CG work.

As an appraiser I am usually the ONLY worker in the process that these borrowers physically meet prior to coming to the closing table. I have never physically met but a small handful of the lenders' employees with whom I have been doing business. I was doing 50% of the appraisal assignments that one of the regional FRT lenders were doing but it was prolly only after 10 years that I happened to drop in and meet the voices I had been speaking with for all those years. And I did that on a whim, not out of any necessity.
 
NC Appraising said:
Fwiw, I hope Braford succeds. I use Alamode, but IFAs needs something to be able to compete with true footage, rsds, opteon, aloft, etc.

If IFAs cannot find a way to complete appraisals in 1-3 days you won't have any of the hybrid business. You'll be stuck with the left over 1004 complex and value issue appraisals. If you can stomach the ROVs or are a number hitter you'll be fine.
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Yep. And like it or not, AI applications like photo recognition will be part of the workflow and the norm. It's happening now:

https://www.globenewswire.com/news-...Flawed-Condition-and-Quality-Adjustments.html

Unlocking new findings from appraisals
Using its proprietary computer vision technology, Restb.AI analyzed 1,271 appraisals and 6,495 comparable properties and uncovered:

  • 1 in 3 appraisals contains a major risk tied to condition or quality adjustments that don’t match the actual property.
  • Nearly 3 out of 4 appraisals show warning signs of inconsistencies that could lead to inaccurate valuations.
  • Most homes were lumped into just two categories for condition (86%) and quality (97%), making it difficult to identify the real differences that could affect property value.
  • Adjustments were made even when properties had identical condition or quality scores – 11.8% for condition and 5.3% for quality – raising questions about consistency and transparency.
https://www.globenewswire.com/news-...Flawed-Condition-and-Quality-Adjustments.html
 
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No doubts the technology is advancing so fast that now are biggest challenges are what and how to manage humans.

That's a science that will be a growth business but not one for the feint at heart.

Balancing ethical and religious beliefs while planning how to possibly manage shortening rather than extending seniors life spans will be a tight rope.
 
Non Sequitur said:
Yep. And like it or not, AI applications like photo recognition will be part of the workflow and the norm. It's happening now:

https://www.globenewswire.com/news-...Flawed-Condition-and-Quality-Adjustments.html

Unlocking new findings from appraisals
Using its proprietary computer vision technology, Restb.AI analyzed 1,271 appraisals and 6,495 comparable properties and uncovered:

  • 1 in 3 appraisals contains a major risk tied to condition or quality adjustments that don’t match the actual property.
  • Nearly 3 out of 4 appraisals show warning signs of inconsistencies that could lead to inaccurate valuations.
  • Most homes were lumped into just two categories for condition (86%) and quality (97%), making it difficult to identify the real differences that could affect property value.
  • Adjustments were made even when properties had identical condition or quality scores – 11.8% for condition and 5.3% for quality – raising questions about consistency and transparency.
https://www.globenewswire.com/news-...Flawed-Condition-and-Quality-Adjustments.html
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So what a bunch of crap thisis - some facelss company ( who are they) analyzing appraisals for stuff that does not matter - like inconsistencies. What replacement do THEY offer?
BTW AI is "hallucinating" and making errors the more it is adapted - read the look up on internet

AI can be integrated in some respects and save time, but it must be monitored, and its solutions can be worse than the problem - such as the idiocy that 20 minutes matter to an appraisal for a 30 year loan -

AI driven tech just kicked me off my health insurance plan that I had for six years because it defaulted to my prior address, and I just spent an hour getting reinstated.
 
cpursley said:
Are you sure that was AI? Sounds like basic incompetent software offshoring to me.
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It may not have been, but AI is now powering the company plus their latest phone message and I never had a problem before.
 
i think it could be the marin city owners after seeing the lowballed appraisal... :oops:
 
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