Corelogic Just Acquired Alamode

[Meandering]

Zillow is going to start buying and flipping homes, so stated on CNBC.

Maybe Corelogic can give them the projections of what those homes will be "worth" on the flip, before they are bought.

.

 

[hastalavista]

Now....
The majority of MY clients have nothing to do with Corelogic. I upload my reports to their own portal and they send it to Fannie Mae.

So is alamode going to share my reports to Corelogic without my clients permission? That is the question.

That is one question: I doubt (but I could be wrong) if there is a law prohibiting Corelogic from mining data from sources they are not permitted to mine, then they will mine them anyway. Why should they? The have tons of data already and data mining is one of the things they do in a compliant manner.

But another question is this: What's to stop the assigns or investors that your other banking clients may use, from delivering the reports through a system that will data mine the appraisal and where those parties have agreed to that?
Cert#21 defines what can be done with the report by the client without obtaining permission from the appraiser. But Cert#21 doesn't restrict what can happen to the report once it is distributed to those identified on the distribution list.
Personal financial information is covered under different regulations. But it is hard to argue that physical/factual information (size) or even a qualitative rating (C3) would fall under confidential financial information (as the laws are written now).

I'm not in favor of data mining. I'm not necessarily opposed to it either. I am in favor of following the rules and regulations. Cert#21 outlines the rules we follow and what we acknowledge the client can do with our report. But that's where it stops; it doesn't prohibit additional distribution after that whether we like it or not.

The only good news I see for those who are opposed to data mining is that with the recent headlines about data mining of personal information and on-line viewing habits, data mining in general is front and center for many decision-makers' (and the public's) radar. So raising the alarm flags to get things changed now might be the best opportunity to do so.
However, under current rules/regulations, once the appraisal leaves our hands and goes to the client, there are no real barriers to stop the appraisals from being data mined: the client can do it, and the secondary market participants or investors can do it, and certainly GSE or government agencies can do it. The only handicap to doing it before was the non-uniformity of how the data was encoded and how components were identified. For residential mortgage work, both the data format and the reporting format has been standardized, so that handicap is gone.

IMO, if one wants to stop appraisal data mining from 3rd party data collection agencies, one is going to have to get some laws introduced that identify property data as financial or consumer data and require that the consumer affirmatively opt-in to the share.
Short of that, I don't see it happening.

 

[EddieB]

Moderator needs a moderator. Or a nap.

I wager the moderator's tone would change if it was ClearBox purchasing his form software

 

[miktay]

I wager the moderator's tone would change if it was ClearBox purchasing his form software

...or Coester

 

[timd354]

I have my popcorn ready because I cannot wait to hear what Dr. Phil has to say about this

Danny, you bring the popcorn, and I will bring the beer.....this is going to be an extended thread/meltdown

 

[NC Appraising]

That is one question: I doubt (but I could be wrong) if there is a law prohibiting Corelogic from mining data from sources they are not permitted to mine, then they will mine them anyway. Why should they? The have tons of data already and data mining is one of the things they do in a compliant manner.

But another question is this: What's to stop the assigns or investors that your other banking clients may use, from delivering the reports through a system that will data mine the appraisal and where those parties have agreed to that?
Cert#21 defines what can be done with the report by the client without obtaining permission from the appraiser. But Cert#21 doesn't restrict what can happen to the report once it is distributed to those identified on the distribution list.
Personal financial information is covered under different regulations. But it is hard to argue that physical/factual information (size) or even a qualitative rating (C3) would fall under confidential financial information (as the laws are written now).

I.

Here is my SLA from my client:

At xxxx, respecting the privacy and security of our customer's personal information is important to us. Except as specifically authorized hereunder, information pertaining to our applicants and borrowers (Borrowers") or their transaction(s) provided for the completion of individual assignments must not be shared or otherwise transmitted to other parties, or included with other information which is provided to other parties or vendors. Information obtained from our Borrowers in connection with xxxx providing a financial product or service is considered "financial", and must be treated as confidential. Information provided to you that is specific non-public customer information or data that is not available from any other widely distributed media source, Federal, state or local public records or private provider, even using a login or key code or requires a fee, or disclosures made to the general public is considered to be confidential customer information. The customer information provided is for your use only and is provided as necessary to effect the transaction in the ordinary course of xxxx providing the financial service or financial product to our customer/borrower. Under law, a service provider is considered a "financial institution" as real and personal property appraisal is a financial activity; therefore the service provider has a fiduciary obligation for the protection of the information provided under this assignment.


My client can do what ever the heck they want too with the appraisal.....I cannot.

 

[chad hampton]

I bet the sales guys at alamode are getting their asses chewed out on the phones today, lol. If I was there, I'd have called in sick today.

Gonna be an awkward sales call to make when what's left of their customers are up for renewal.

 

[glenn walker]

Spoken like a true and typical Californian person. Don't mine being taken over and run and controlled by big Government. "Everything's OK people just don't fight it..just step in to the showers...nothing bad will happen it's not a gas chamber". We're not talking about appraisal software pal. We'll talking about Corelogic and all they are doing and all that they are buying up and controlling, but thanks for trying to defuse the situation for them. Tell your associate at corelogic you really tried.

I have never done any work for Corelogic and yes I am in California but since my Mother-Grand Mother and Great Grandfather were German Jews I don't plan on standing in a shower or gas chamber because we already had a few family members do that back in 1943. As far as defusing the sale of Alamode to Corelogic I have no dog in this fight because I have used Bradford for the last 15 years but I also realize this is not going to be an-isolated issue because there is no future for small appraisal software companies and it's best to sell or merge while there are still a few buyers. As far as appraisers calling and yelling at Alamode employees that's also childish because they just work there.

 

[NC Appraising]

Danny, you bring the popcorn, and I will bring the beer.....this is going to be an extended thread/meltdown

I understand where you guys are coming from....from the corporate side. There is nothing we can do about it, but put yourself in our shoes and you will realize where we are coming from. Mom and Pop store that has been in business for 40 years and Wal-Mart opens up next door....have to find another way to feed your family. Or the factory that is closing down. Kinda of what it feels like to the appraisal profession. We are drowning and have only a few breaths left.

I give appraisers about 10-15 years of remaining life (mortgage lending). Laws will get changes, AVM's will have data. Realtors or home inspectors will inspect the property, rate it, and the AVM will do the rest. No need for an appraiser. Big data firms will offer insurance of some kind.

https://www.urban.org/sites/default/files/f_sunset_seminar_-_appraisals.pdf

The above is from early 2017....it is now being done. Whos idea was it? Quicken Loans?

FWIW, I would hate to be a loan officer. There day's are cooked also. BOA just announced something similar to rocket mortgage.

The entire process will be computerized in 10-15 years (most large companies are now).

For us, it is like having your favorite band to sell shirts at the Wal-mart (selling out) or having your favorite craft beer to be sold to Bud light.

It hurts, although I wondered what took so long.


Having fun yet? Beer gone?

 

[ucbruin]

For those of you who are too shy....
Please feel free to correct me if I'm miss informed....

First American owns Corelogic...
First American owns ACI....

Was there this much angst when First American purchased ACI?