Appraisal reviews continue to be under scrutiny with two major industry concerns: The first is whether the report is compliant with the Uniform Appraisal Dataset (UAD) guidelines, which is automated by the Uniform Collateral Data Portal (UCDP) — a single portal through which lenders electronically submit appraisal reports for conventional mortgages delivered to Fannie Mae or Freddie Mac. The second concern is the quality of the appraisal source. 

To adhere to both, automated technology is playing an increasingly important role in appraisal review. While technology aims to make improvements, many appraisers may be fearful of such change; therefore, a deep understanding of technology is the key to success, and having answers to some of the most basic questions can help determine what is best for you. 

We live in a connected world. Information spans several devices — from the phones in our pockets to the laptops on our desks. Appraisal mobile technology, or “apps,” have seen releases from nearly every technology provider. Even appraisal firms and appraisal management companies (AMCs) are releasing mobile applications. In last year’s technology special report, the jury was still out on appraisal mobile app adoption. “Some appraisers ‘swear by their mobile’ and some appraisers ‘swear at their mobile,’” George Opelka, senior vice president of ACI told us. It’s a year later and more mobile apps have been developed and released and tablets have become more prevalent in our everyday lives.

So how has mobile appraisal app adoption fared in 2013?

Automated valuation models (AVMs) were introduced in the mid-1990s and since that time, their uses have expanded from quality control checks to all aspects of property valuation. The willingness to accept computed valuation information has increased with the technology’s ability to provide objective, fast and cost-efficient information. Further, AVMs have opened the door to a suite of predictive analytic products which provide users with the ability to forecast values, identify possible fraud, examine risk from various angles, assess values and risk in default properties, examine the work of an appraiser and automatically self-tune systems and vendor relationships. David Rasmussen, senior vice president, operations for Veros, took a moment to talk to Valuation Review about the current climate of predictive technology. 

Mark Stockton began appraising real property in the 1960s. After developing the nation’s first fully-integrated banking software, Stockton formed a company for the sole purpose of developing tools and analytics to help appraisers generate more accurate property valuations more efficiently. The company was the first to copyright automated valuation model (AVM) technology and appraiser assisted automated valuation technology in 1981. Today, this pioneering appraiser launched Valuation Research LLC in 2012 with is partner Rob Hausman to market enhanced technology the company has been developing since 2003. Stockton sat down with Valuation Review to talk appraiser technology and how Valuation Research has wrapped its analytics in a new presentation layer to take advantage of the latest technology and added functionality that Stockton believes is essential to professional appraisers today.

Valuation Review: What’s the current temperature of the appraisal tech market and where does Valuation Research fit into it?

Stockton: The traditional appraisal product has lacked credibility and defensibility. Can you think of any other profession that has spawned an entire industry devoted to reviewing its product for compliance, completeness and reasonableness? We believe that is due, in large part, to the fact that appraisers have limited access to the information and analytics they need to do their job properly, and it underscores an obvious need for higher quality products. Our tools ensure the requisite level of credibility and defensibility necessary to make an appraisal report a useful tool in a decision making process.

Most of us take for granted that our home has an address and that it is sufficient not only to ensure mail can be delivered, but that property taxes and liens are associated correctly, and our visitors can find us on a map or emergency personnel can find us. In many areas of the country, postal address is sufficient, however, there are areas where the location of a property is not easily resolved by a postal address alone. 

But appraisers know full well the pitfalls of using postal address as the means of identifying a property. How many hours are wasted in dialog between AMC and appraiser disputing the address of a property on an appraisal order versus the true identity of the property in question, even when the appraiser is standing at the physical location of the subject? It continues to be a source of revision requests and client/appraiser communications as invariably, when there is a difference, such as in rural locations, the client and the end investor want the postal address even when that is not the true identification of the property. Simply, the systems in use for conveying appraisal transactions between AMCs, lenders and investor portals such as UCDP, are programmed to validate addresses using only the USPS references. 

Since its implementation, the uniform appraisal dataset (UAD) has impacted everything from appraisal form fields to file type. 

“The addition of the UAD has really helped the appraisal space in a couple of different ways,” explained Vladimir Bien-Aime, president of Global DMS. “The introduction of the UAD ensures that certain fields on an appraisal report are filled out using uniform and standardized response codes. This dramatically improves the quality and consistency of appraisal data on loans delivered to the GSEs. The UAD has effectively standardized the way information is provided.” 

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Appraisers are, perhaps, the most resistant to change in the valuation industry. Or at least they’re the most vocal about the change. According to Jenn Reese, managing director at Value Services, a nationwide property valuation company, communication is going to be the key to driving appraisal technology and efficiency. 

“The first thing that appraisers need to do is communicate with their peers,” she said. “The residential appraisal profession is very segmented. Many appraisers work on their own or with a very small group and never learn to adopt new processes outside of their circle. In fact, residential appraisers very often work in solitude and consider other appraisers to be their competition as opposed to their peers. Each does things a particular way, and the attitude is that if you don’t do it the same way, you are wrong.” 

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The 2013 Appraisal Technology Report tackles the rise of appraisal technology, the growing adoption of mobile apps, predictive analytics, property identification, automated valuation models (AVMs) and beyond. Download the report today! This year’s report is for subscribers only. So make sure you’re a Valuation Review subscriber to get the full report delivered to you on Monday, June 10. You can subscribe by visiting the October Store. 

On Monday, June 10, Valuation Review will release its anticipated follow-up to last year’s “App-raising Technology Special Report.” The 2013 Appraisal Technology Report will tackle the rise of appraisal technology, the growing adoption of mobile apps, predictive analytics, property identification, automated valuation models (AVMs) and beyond. This year’s report is for subscribers only. So make sure you’re a Valuation Review subscriber to get the full report delivered to you on Monday, June 10. You can subscribe by visiting the October Store. Here’s a preview of the content you can look forward to ...