I am not doing the 3.6 FORM deal

[alebrewer]

AI analysis. Where they will be stored in the algorithms forever. 10 years from now "somebody" will know that the homeowner's dishwasher is reaching the end of its useful life and it's time to spam them to replace it.

Yeah, but they can do that with the existing photo protocols. As far as I know, jpg is jpg. I don't think that's changing...

 

[Mike Ault]

Yeah, but they can do that with the existing photo protocols. As far as I know, jpg is jpg. I don't think that's changing...

The point is, we don't know what their intentions are with all this new data that they're gathering. Obviously, they are intending to feed it into a huge database which they will use to perfect AVMs. It's not too big a stretch of the imagination to think they will also attempt to monetize that information in ways that the homeowner never intended. Law enforcement and the IRS will certainly have a login to the GSE's artificial intelligence analysis, don't you think?

 

[Sandra Koutsopoulos]

Why would the photos be less confidential than they are now, Sandra? What is going to change WRT photo storage?

Joan Trice, among others, have dangled the concept of monetizing appraisal photos. If everything is digitalized for all FNMA/Freddie loans, and submitted into their mega-database for 'purposes of having best data on housing loans', photos would be part of that info-sludge, available to certain entities for a fee(?), and thus no longer private. We used to think our SS info was sacrosanct and there were laws to protect it. But laws change, and accessibility to digitalized info cannot be fully protected once it goes into a searchable database.

 

[Sandra Koutsopoulos]

The GSE's will not slow down implementation for the sake of appraisers. If the lenders are having issues and need more time to integrate UAD 3.6 into their pipeline, the GSE's will extend the deadline. The best thing appraisers can do, if they continue in the field, is to raise their fees.

If there is no WILL among appraisers to broadly require fair compensation for the extra time/work the 3.6 promises to require, fees will NOT increase enough to compensate. And where would these fee increases come from? Consumers? Borrowers who simply want a loan on their property, but have no interest in having the height of their ceiling or materials of their flooring etc logged into a database in the sky. Probably accessible by the local Assessor's Office. Maybe by thieves or others having bad intentions. We won't be compensated for the extra work unless consumers pay for that, bottom line.

 

[J Grant]

The point is, we don't know what their intentions are with all this new data that they're gathering. Obviously, they are intending to feed it into a huge database which they will use to perfect AVMs. It's not too big a stretch of the imagination to think they will also attempt to monetize that information in ways that the homeowner never intended. Law enforcement and the IRS will certainly have a login to the GSE's artificial intelligence analysis, don't you think?

Speculation, but I predict that at some point there will be massive fraud via hacking into the expanded systems with fake equity loans, refinances or even fake sales taking place. Being that the cloud and itnernet is being used at the same time, that safeguards ( such as title searches and desktops of AVM with no inspection or a PDC collection ) are being removed for speed and "efficiency." There is already a history of funds sent electronically for a closing being rerouted to crooks..

With more people who have nothing at stake flooding into the appraisal profession (PDC collectors) and the young rootless techies behind the software companies promising magic value solutions combined with AI sharing, what could go wrong? It just takes a few bad actors in any segment. There is too much $ for it not to happen.

 

[alebrewer]

Joan Trice, among others, have dangled the concept of monetizing appraisal photos. If everything is digitalized for all FNMA/Freddie loans, and submitted into their mega-database for 'purposes of having best data on housing loans', photos would be part of that info-sludge, available to certain entities for a fee(?), and thus no longer private. We used to think our SS info was sacrosanct and there were laws to protect it. But laws change, and accessibility to digitalized info cannot be fully protected once it goes into a searchable database.

Right - I understand the argument. I just don't know what is changing WRT photo uploads. They're still jpg's - regardless of whether you're delivering 2.6 or 3.6, right? Any kind of photo recognition AI they could apply to 3.6, they can also apply to 2.6 - or at least it seems to me.

Speaking of... just saw a demo on FB of using AI for a job site inspection. This stuff is pretty wild...

View this content on Instagram

View this content on Instagram

 

[Sandra Koutsopoulos]

I think the difference is a searchable database by non-principals, which is open to the general public, with perhaps some qualifying restrictions to limit distribution to anybody/everybody.

 

[cashcatz]

Right - I understand the argument. I just don't know what is changing WRT photo uploads. They're still jpg's - regardless of whether you're delivering 2.6 or 3.6, right? Any kind of photo recognition AI they could apply to 3.6, they can also apply to 2.6 - or at least it seems to me.

Speaking of... just saw a demo on FB of using AI for a job site inspection. This stuff is pretty wild...

View this content on Instagram

View this content on Instagram

Now this is what I'm talking about! This is how AI can be very useful. Combine that with LiDar and boom - inspections are way easier.

 

[Terrel L. Shields]

Why would the photos be less confidential than they are now

I don't use a phone as a camera but, computers MS and Apple alike are evil. I was cleaning up some files and found some pictures from 2013 in a folder of so-called "deleted" photos that came from me moving my cousin (whom I administered his estate) picture files to my computer. Even despite having put a new computer in service 2 years ago, these old files somehow continued to find their way in the memory of the computer. So, does "recycle" really delete files or not? I don't know.

 

[J Grant]

Now this is what I'm talking about! This is how AI can be very useful. Combine that with LiDar and boom - inspections are way easier.

Any minor increment of ease will be offset by the clients demanding it faster and for possibly lower fees.

Or more pain:: if other fields experience what the appraisal industry is experiencing- the overlords using cheap fee, non-licensed people to "inspect " (since AI and wonder tools are available !) -if that happens in HIS field, I would be interested to see what the man in this video thinks.

The problem is not AI, which can be useful and which can help a true professional. The problem is the snake oil salespeople and techies/low investment folks with nothing at stake, trying to usurp professions for a quick buck

What they don't recognize is that the construction inspection or home inspection business both have finite volume, as appraisal does. Being faster or cheaper, whether on the inspection or the valuation side, will not provide more volume. With the same tools available, the competition will all increase their speed. Since the volume is finite, with more people competing for the volume and lower fees, nobody is going to make much $ going forward -(except for those at the top).

In essence, be careful what you wish for. Inspections might be 15 minutes faster, or offer some increased functionality with software, but now your income is cut in half. Was that a good tradeoff?