Big data… artificial intelligence… algorithms; you cannot attend a conference, turn on the TV, surf the internet or read an article these days without hearing about how the world will be changed by these powerful tools.
It is irrefutable, undeniable, and easily apparent. Increasing computational power combined with ever growing data promises the ability to see and interact with the world in new ways. But how the world will change with new technology remains up to each of us, the citizens of this great democracy.
At Valuation Expo in Chicago being held March 18-20, you will hear from this year’s Valuation Visionary award winner, Paul Chandler, MAI, Founder and CEO of Property Sciences. Mr. Chandler will discuss the application of algorithms in housing finance and will review the mathematics used in the foundation of AVMs. He contends thirteen percent, plus or minus, as advertised by the best GSE algorithm may be good enough for Wall Street salesmen, but it should not be acceptable to American homeowners.
He will discuss the current love affair with hybrid bifurcated inspection products championed by the institutional mortgage market, while explaining the champions have lost their mind and their moral compass. Remember, these are the same champions who, until recently, would not let trainees inspect without the supervising appraiser.
If the institutional mortgage market really wanted quality appraisals performed by qualified and educated appraisers, they would have fixed the problem a long time ago. The solution is easy. Pay for quality. Review, monitor, and audit an independent process operated by independent expert professionals. Remove the bad actors and replace them with higher quality professionals.
The time for a complete overhaul of the appraisal regulatory structure is needed now, more than ever. Come to Chicago and help us build a brighter future. A future where equity in every American home is protected for every consumer for generations to come.
About Paul Chandler
CEO and Founder of Property Science, Paul is an industry leader with 30 years of experience in valuation, appraisal, lender-platform technology development and online/print media. Prior to Property Science, Paul founded Commercial Lender magazine in 1995 and C-Lender.com in 1999. He holds an MBA with an emphasis in real estate from the Haas School of Business, California, Berkeley and a BS in Business Administration with an emphasis in finance from the University of California, Berkeley. Additionally, he holds a California Real Estate Broker’s License and was an N.A.S.D. General Securities Registered Principal and is a recipient of the Affiliate of the Year Award. Member of the Appraisal Institute holding the MAI designation and is a state certified appraiser with the General Certification.