20 Minute AI Appraisals Are Coming

[NC Appraising]

GSEs are competing for Rocket’s volume. Rocket wins more volume from Main Street Bank when they can close in 3 days vs 30 days.

Share

The mortgage company Rocket is buying competitor Mr. Cooper in an all-stock deal valued at $9.4 billion, just weeks after acquiring real estate listing company Redfin.

Rocket Cos. said Monday that bringing Mr. Cooper Group Inc. into the fold will create a business representing

***
one in every six mortgages in the United States **



nd give it almost 7 million additional clients. The deal will boost loan volumes, the company said, while lowering client acquisition costs.

“By combining Mr. Cooper and Rocket, we will form the strongest mortgage company in the industry, offering an end-to-end homeownership experience backed by leading technology and grounded in customer care,” Mr. Cooper Chairman and CEO Jay Bray, who will become president and CEO of Rocket Mortgage, said in a statement.

https://www.supremecourt.gov/DocketPDF/21/21-428/192855/20210917210243705_Rocket%20Mortgage%20Petition%20Appendix%20Final.pdf

 

[alebrewer]

I am not lying.

I didn't think for a moment that you were, which leaves the first option as the apparent answer. I am certainly no expert, but I use AI daily. I use it to write code - both in r as well as Excel. I use it to fix errors in code. I use it to analyze data. I use it to extract data out of a PDF for a different format. I've used it to create new chord progressions for guitar and violin. I've even used it to analyze a story - although that was just for fun. It truly is a game changer. I suspect most mortgage underwriters will be out of a job within 3-5 years. I suspect AI will exponentially decrease the amount of time before driverless cars are mainstream. I expect municipal traffic control systems to adopt AI into their queuing algorithms. It really is that powerful.

 

[cashcatz]

I've used it to create new chord progressions for guitar and violin.

Cool! I've used it to expand on some lyrics my daughter and I came up with as well as a chord progress for ukulele. There's so many creative use-cases.

Here's the (pretty mind blowingly adorable) results, especially the "guitar solo" which I can't get over. Guess my backup plan as a guitarist is not gonna happen...

Crocodile Smile

Listen and make your own on Suno.

suno.com

 

[alebrewer]

Here's a 12 bar progression it wrote with the command to 'use only altered chords'...

 

[alebrewer]

I've used Grok as a foundation for writing several policy docs. Even used it to estimate the cost of a 1900' boathouse in Charlevoix MI. Here's what I got:

Factors Influencing Cost​

1. Base Construction Costs in Michigan: General residential construction costs in Michigan range from $100 to $180 per square foot for a standard home, with higher-end custom builds reaching $250 to $700 per square foot depending on finishes, location, and complexity.
2. Boathouse-Specific Costs: Boathouses require additional considerations such as pilings or foundations suited for waterfronts, moisture-resistant materials, docks or slips, and potentially roofing over water. These factors typically increase costs beyond standard home construction.
3. Location Premium in Charlevoix: Charlevoix is a desirable waterfront community on Lake Charlevoix and near Lake Michigan, which can elevate labor and material costs due to demand, tourism-driven economics, and site-specific challenges (e.g., shoreline regulations or permits).
4. Special Features: A boathouse might include boat lifts ($1,000–$15,000 each), decking ($4–$40 per square foot), or luxury amenities (e.g., plumbing, kitchens), which vary based on design.

Estimating the Cost​

Since specific data for boathouses in Charlevoix is limited, we can extrapolate from general Michigan construction costs and boathouse-specific estimates:

• General Michigan Costs: Sources suggest an average of $90 to $150 per square foot for standard homes, with custom builds averaging $250 per square foot for mid-range finishes in desirable areas like Charlevoix.
• Boathouse Cost Range: Boathouses nationally range from $10,000 to $50,000+ total for basic structures (roughly $50–$200+ per square foot depending on size and features). For a 1,900-square-foot boathouse, this implies a broader range due to its larger size and potential complexity.
• Adjusted for Charlevoix: Waterfront properties and labor in Charlevoix are likely at the higher end of Michigan averages due to the area’s premium real estate market (median listing price per square foot was $309 in October 2024) and construction challenges near water.

Low-End Estimate​

• Base Cost: $150 per square foot (Michigan average for basic construction).
• Boathouse Adjustment: Add 20–50% for waterfront-specific needs (e.g., pilings at $13–$16 per foot, decking, and moisture-proofing), yielding $180–$225 per square foot.
• Total: $180 × 1,900 = $342,000 to $225 × 1,900 = $427,500.

Mid-Range Estimate​

• Base Cost: $250 per square foot (custom home average in desirable Michigan areas).
• Boathouse Adjustment: Add 20–50% for moderate features (e.g., a lift, quality decking), yielding $300–$375 per square foot.
• Total: $300 × 1,900 = $570,000 to $375 × 1,900 = $712,500.

High-End Estimate​

• Base Cost: $400 per square foot (luxury custom build).
• Boathouse Adjustment: Add 20–50% for premium features (e.g., multiple lifts, plumbing, large deck), yielding $480–$600 per square foot.
• Total: $480 × 1,900 = $912,000 to $600 × 1,900 = $1,140,000.

Final Cost Range​

Based on this analysis, the cost to build a 1,900-square-foot boathouse in Charlevoix, MI, as of March 4, 2025, is likely between $180 and $600 per square foot, depending on design, materials, and features. This translates to a total cost of $342,000 to $1,140,000.

• Low-End ($180/sq ft): Basic structure, minimal features, DIY elements.
• Mid-Range ($300–$375/sq ft): Custom build with moderate amenities (e.g., a lift, quality decking).
• High-End ($600/sq ft): Luxury boathouse with advanced features (e.g., plumbing, large deck, premium materials).

Documentation and Reasoning​

• Michigan Construction Costs: Web sources indicate $90–$150 per square foot for average homes, with custom builds at $250+ per square foot in premium areas (e.g., HomeLight, Houzeo). Charlevoix’s waterfront status justifies leaning toward the higher end.
• Boathouse Costs: General estimates for boathouses range from $50–$200+ per square foot (e.g., Angi, Lamulle Construction), with larger or luxury builds exceeding this. A 1,900-square-foot structure aligns with mid-to-high-range pricing due to scale and location.
• Charlevoix Context: Real estate data (e.g., realtor.com) shows a median listing price of $309 per square foot for existing homes, suggesting new construction—especially specialized like a boathouse—would exceed this.
• Adjustments: The 20–50% premium accounts for waterfront-specific costs (e.g., pilings, permits), consistent with industry insights on docks and boathouses.

Limitations​

• Lack of Specific Charlevoix Boathouse Data: No exact figures for a 1,900-square-foot boathouse in Charlevoix were found, so this is an extrapolation.
• Variable Features: Costs depend heavily on unspecified details (e.g., number of boat slips, roof type).
• Economic Fluctuations: Material and labor costs have risen since 2022 due to supply chain issues, potentially pushing current costs higher than historical averages.

 

[NC Appraising]

Key takeaways from this year's Digital Mortgage conference

The Digital Mortgage Conference is one of those events that leaves you with dueling emotions. On the one hand, the innovative technology, willingness of attendees to brainstorm solutions, and positive momentum create excitement that our industry is moving in the right direction. And yet, we...

www.clearcapital.com

Seeing the interaction between Kevin and Rachel Robinson (Quicken Loans), Usha Chatarpaul (Fannie Mae), and Tanya DeLia (Freddie Mac)

 

[NC Appraising]

Rocket Mortgage leads the way in appraisal waivers​

As an early adopter, Rocket Mortgage appears to optimize use of appraisal waivers and inspection based waivers for their customers. This chart shows Rocket Mortgage compared to all other lenders.

Appraisal Waivers in August Highest on Rocket Mortgage Utilization

GSE issuance was $9.2BN (13.5%) utilizing appraisal waivers in August, up 22.8% on the prior month, and the highest in 2 years.

mtgefi.com

Rocket Mortgage’s Rachel Robinson to speak at HW Annual

Rocket Mortgage's Rachel Robinson will discuss how technology can play an important role in the appraisal process and help eliminate discriminatory practices

www.housingwire.com

Robinson is responsible for creating policy specific to collateral and developing new and innovative products in the collateral space within the Rocket

Robinson later moved into leading the government credit policy and product development team, immediately preceding her current role, where her team was responsible for creating and maintaining all policy and product development for VA, FHA, and USDA.

 

[CGinMN]

Don't worry, they are just concerned about the growing trend of appraisal bias.

 

[Vermonter]

I didn't think for a moment that you were, which leaves the first option as the apparent answer.

Think most still see it as just a chat window to ask questions and if you ask correctly you may or may not get the right answer.

They also don't realize the exponential growth in improvements and use cases because it's coming at us too fast.

 

[Non Sequitur]

Rocket Mortgage leads the way in appraisal waivers​

As an early adopter, Rocket Mortgage appears to optimize use of appraisal waivers and inspection based waivers for their customers. This chart shows Rocket Mortgage compared to all other lenders.

Glad you posted that because some people still deny the numbers and the "who" behind the numbers.