3.6 Crunch Time

[Non Sequitur]

Also, if it is a dying business as the experts have been saying for years, why would a high quality tech company risk being associated with the 3.6 abomination with so much to lose PR wise and so little to gain? It's like a physician being challenged to cure a cad and hooker of the pox knowing as soon as they've been pumped full of meds, they'll resort to their wicked ways, the underlying problem remains. Alsie was oh so right about 3.6, it's an abomination.

I was listening to a zoom today, the GSEs are expecting up to 20 verified 3.6 report providers by year end. Crazy. From what I gather most aren't spending their own money, the PE and VC money is flowing. So, nothing ventured nothing gained? Can't say I blame them, look at what True Footage has done with data mined from appraisers using their adjustment software. Cha-ching!

 

[glenn walker]

I was on a webinar today, the GSEs are expecting up to 20 verified 3.6 report providers by year end. Crazy. From what I gather most aren't spending their own money, the PE and VC money is flowing. So, nothing ventured nothing gained? Can't say I blame them, look at what True Footage has done with data mined from appraisers using their adjustment software. Cha-ching!

20 Verified Provider's ?..maybe the prices on software can come down with some competitors rather than just the few legacy ones controlling the markets.

 

[chad hampton]

20 appraisal software companies?

Maybe 1 of them will work.

 

[Non Sequitur]

20 Verified Provider's ?..maybe the prices on software can come down with some competitors rather than just the few legacy ones controlling the markets.

It's anyone's guess at this point. True Footage and Opteon are developing 3.6 software for their staff, not sure of they will sell it. The Regorra dude trolled Freedom/Andy's Facebook group today and started some drama. Guess he's finished vibe coding his 3.6 offering, and if you believe him his 3.6 software is free because he wants appraisers to use his platform. I'm sure there are several we've never heard of in the background burning through PE and VC money, for them it's just throwing spaghetti against the wall on someone else's dime. We'll find out soon enough.

 

[glenn walker]

Vc Capital firms must know something like other software being developed for banks, lenders, reviewers and underwriters because no way throwing money just to sell to appraisers.

 

[Non Sequitur]

Vc Capital firms must know something like other software being developed for banks, lenders, reviewers and underwriters because no way throwing money just to sell to appraisers.

I think FinTech/real estate tech is attracting a lot of interest right now. And VC firms are known for throwing a few darts.

 

[glenn walker]

True but there's something bigger going on and with the possibility of the GSEs early next year going public the whole operations may change how even appraisals are ordered and managed or used.

These guys aren't as dumb as many think they are and there looking at maximizing profits with or without appraisers.

 

[Vermonter]

I was listening to a zoom today, the GSEs are expecting up to 20 verified 3.6 report providers by year end. Crazy. From what I gather most aren't spending their own money, the PE and VC money is flowing. So, nothing ventured nothing gained? Can't say I blame them, look at what True Footage has done with data mined from appraisers using their adjustment software. Cha-ching!

If new providers are motivated by PE and VC, our time is much shorter than we think

 

[J Grant]

Vc Capital firms must know something like other software being developed for banks, lenders, reviewers and underwriters because no way throwing money just to sell to appraisers.
True but there's something bigger going on and with the possibility of the GSEs early next year going public the whole operations may change how even appraisals are ordered and managed or used.
These guys aren't as dumb as many think they are and there looking at maximizing profits with or without appraisers.

I wrote months ago on this board as a speculation that 3.6 was developed with broader horizons in mind than appraisers.
Such as...if appraisers are dumb enough ( or captive as AMC staff ) to use AI programs to do the heavy lifing, aka populate the fields and even beyond that, pick comps and make adjustmetn and write canned narratrive...( some churan and burn appraisers might do that ) then the next step is for the GSE's to replace the appraiser, stating that since it is mostly AI doing the work, then any "professionally trained" non appraiser can do it. They will give that person an official-sounding name, like data analyst. This would follow their influxing non-appraisers into the field to perform data collection, replacing the appraiser on the inspection of their own subject.

There is a reason the new tech-bro, non-appraisal software companies are able to offer the 3.6 UAD so fast. It can be delivered over the net, which is what will allow it to be used, for a per-use fee, to other users besides appraisers. Those other users will not need to sign a year-long contract and an upfront expense commitment to a legacy software company as appraisers traditionally did. Which goes along with no commitment to what they are doing other than a paycheck, like the non-appraiser PDR collectors, who made no investment in appraisal as a career. Easy come, easy go, lots of turnover. These are the people with whom the GSE's are replacing appraisers. The profit stream is diverted to the AMCs who are set up to handle non-appraisers filling out checklists by rote.

 

[Zoe]

I don't know when VA will adopt it. VA is huge player. I don't know. The thing that gives VA such credibility is they needed no bailout. VA is Only major player that needed no bailout.

Many small lending institutions needed no bailout and they hire their appraisers in house. VA is on same level as FHA, GSE, and Major lending institutions on a global scale.

VA needed no bailout. All the other major players other than VA needed taxpayer bailout.