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AI Ready

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Jordan Scott

Thread Starter
Junior Member
Joined
Aug 2, 2005
Professional Status
Licensed Appraiser
State
Maryland
What is AI Ready? Do you use it? Where do you get it? I keep reading all of this stuff about AI Ready but nothing gets right to the point and explains what its purpose is.
 
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Montana
FAQ's

This should answer your questions:

AI Ready Link to FAQ'S

Basically, the intent of AI Ready was to create a standard for transmitting reports to users that could be analyzed by the user. There was thought to be a benefit of having a central repository of appraisal data and this was seen as a means of transmitting that data and receiving that data and automatically populating the report.There are also some efficiencies in the ordering process. The idea has not gained wide acceptance and today transmittal by Adobe PDF dominates the means to transmit reports.

To say that appraisers remain leery of any but the most secure transmittal device would likely be an understatement as you might find out by the posts that are about to follow.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
As appraisal form-filling software was developed, each company came up with its own proprietary format for storage of appraisal report files. This meant, for example, that an appraiser using Ala Mode could not directly load an ACI file, and vice versa. The software vendors eventually developed translators that would allow each program to read files developed by the software of another company, but the native file formats remained different.

For clients wanting to automate (or at least partially automate) review of appraisal reports, this caused complications. In response to client requests, the AI and FNC put together a team that developed the AIReady format. AIReady is just a set of “rules” as to how individual fields on forms are labeled and stored. Most software companies now include an option to save a report in AIReady format.

If a report is sent in AIReady format, then a client can read data directly out of the report automatically. For example, I know one company that automatically looks at about 30 fields on an appraisal report and uses a rule set to determine what degree of additional review is needed (desk review, field review, etc.).

When an appraiser sends a report in PDF format, the appraiser is basically sending a picture of the completed appraisal forms. Clients use a PDF viewer to see that picture, and what they see is the same thing the appraiser sees.

When a report is sent in AIReady format, the appraiser is sending a bundle of data packets with XML tags. The client can use a viewer to see any or all of the data packets. The viewer may result in a client seeing the report much the way it looks on the appraiser’s computer screen. However, they may also choose to use a viewer that shows it very differently. For example, a client could apply a viewer that showed only the adjustment grid.

Clients have been extracting data from reports and rearranging the presentation to meet their needs since they first started receiving reports. Using AIReady just makes it much easier for them to do this. Many appraisers are VERY uncomfortable with the concept because the client is not forced to ever see the report in the same format that the appraiser sees on his/her screen. Some say this is inherently misleading.

Envisioned benefits to the appraiser mainly had to do with automatically filling out portions of the appraisal form. If an order was received in AIReady format, then the data (borrower, address, etc.) could be automatically transferred into the report. A national sales database was also envisioned. This would allow appraisers to not only select comps, but have them automatically populated into the adjustment grid. Appraisers have largely rejected the concept because of “data mining” possibilities.

Many large lenders currently use at least some degree of automation in their review of appraisal reports. As Doug noted, PDF has become the defacto standard for reports. Some lenders simply convert the PDFs into XML and use the same processes they would apply if the report had been delivered in AIReady.

This topic generates a great deal of heat on this Forum. One thing that has been swept under the rug is that a lot of the negative press about AIReady comes from a company that wanted clients to accept their XML standard rather than AIReady (can you say ulterior motive J).

Also, when AI and FNC developed the AIReady concept they had extensive communications with the ASB to ensure that it was not contrary to USPAP. So, if a state board decides that an appraiser’s use of AIReady is a USPAP violation, they will be contradicting the ASB’s decision.
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
USPAP is not the same in every state.

Also, when AI and FNC developed the AIReady concept they had extensive communications with the ASB to ensure that it was not contrary to USPAP. So, if a state board decides that an appraiser’s use of AIReady is a USPAP violation, they will be contradicting the ASB’s decision.
States are not necessarily contradicting the decision of the ASB if they find usage of AI Ready is a USPAP violation. It would depend on what portion of USPAP is cited as being a problem. USPAP has reference to outside rules, such as a requirement to obey laws:
An appraiser must not engage in criminal conduct.
If the state found use of AI Ready violates a state law, it would also be finding use of AI Ready violates USPAP. That little part of the conduct section of the ethics rule means USPAP does not require the same thing in every state.

Not that most states would concern themselves with contradicting the ASB. The fact is USPAP says what the local appraisal board interprets it to say. The author's intent may be considered, but that intent is not authoritative. It works just like the US Constitution, which says what the Supreme Court interprets it to say. What was intended is all well and good, but it is the interpretation of enforcement agencies that matters.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
The ASC is not the law.
What about the Digital Millennium Copyright Act (DMCA) was signed into law by. 1. President Clinton on October 28, 1998?????
What about the Digital Signatures Act?????

IMO, it's beyond arrogant to unlock secured computer documents, alter them into something the author did not do, then apply the author's digital signature back onto that altered document and pass it off to others as the real thing - and actually think doing this is OK. I consider that fraud and look forward to the courts opinion about this.
 

Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Oh brother.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
The lines on the copyright issue have been drawn, people have taken sides, and until there is case law it is unlikely that either side can be persuaded to deviate from their current position. This will be decided in court. I have my views, but stating them here is pointless.

On the other hand, there has been relatively little discussion on this Forum about digital signatures - at least not about real digital signatures. Looking at the Digital Signature Act is eye opening.

As most are delivered today, appraisal reports actually contain no digital signature - at least not as defined by that law. Surprise!!

The law states, in part,

(3) the term `digital signature' means a mathematically generated mark utilizing asymmetric key cryptography techniques that is unique to both the signatory and the information signed;

If you use Verisign, or some other similar service, you are applying a digital signature. If you only apply a graphical presentation of your hand-written signature, well that meets the definition in USPAP, but not the definition in the law, (even if you use a password to apply it). If one's signature does not meet the requirements expressed in the law, it seems unlikey that law will offer any "protection."

If a document has a true digital signature the recipient can easily verify its authenticity.

For years we have worked under a false illusion of security. I have been looking for years for an economically viable true digital signature, and I am glad some companies are finally addressing this need for appraisers with products like Matrix, PinCert, etc.

Right now almost all appraisal reports are very vulnerable, especially those generated by software that allows the end user to generate the "signature".
 
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Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
The lines on the copyright issue have been drawn, people have taken sides, and until there is case law it is unlikely that either side can be persuaded to deviate from their current position. This will be decided in court. I have my views, but stating them here is pointless.

On the other hand, there has been relatively little discussion on this Forum about digitaigal signatures - at least not about real digital signatures. Looking at the Digital Signature Act is eye opening.

As most are delivered today, appraisal reports actually contain no digital signature - at least not as defined by that law. Surprise!!

The law states, in part,



If you use Verisign, or some other similar service, you are applying a digital signature. If you only apply a graphical presentation of your hand-written signature, well that meets the definition in USPAP, but not the definition in the law, (even if you use a password to apply it). If one's signature does not meet the requirements expressed in the law, it seems unlikey that law will offer any "protection."

If a document has a true digital signature the recipient can easily verify its authenticity.

For years we have worked under a false illusion of security. I have been looking for years for an economically viable true digital signature, and I am glad some companies are finally addressing this need for appraisers with products like Matrix, PinCert, etc.

Right now almost all appraisal reports are very vulnerable, especially those generated by software that allows the end user to generate the "signature".

A false illusion of security. Odd, that in 2000 when I shopping for Y2K compliant software, pdf, LOCKED, secured, internet delivered appraisal reports per USPAP, FIREA, etc that was pitched to me was misleading? Or was I just stupid when I believed them?
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
A false illusion of security. Odd, that in 2000 when I shopping for Y2K compliant software, pdf, LOCKED, secured, internet delivered appraisal reports per USPAP, FIREA, etc that was pitched to me was misleading? Or was I just stupid when I believed them?

"Secure" is relative. I can lock the front door of my house, but that does not make it a SCI facility.

I wish more people on this forum would provide factual information rather than just spout off about what they "believe."
 
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