[show_avatar email=1105 align=right user_link=authorpage display=show_name avatar_size=175]These are trying times for appraisers and homeowners alike, trying to get the oh so important interior data on the subject properties so the wheels of the mortgage behemoth can keep turning. Clear Capital has launched a new product that solves that problem and they are offering it for free to everyone. We sat down with Jeff Allen, Executive Vice President of Valuation Strategy of Clear Capital to find out more about the product. Jeff is hosting a free webinar on Thursday, April 23rd at 1:00 pm ET which is open to everyone who wants to get a peek at this product and understand the power and ease of use for both appraisers and the homeowner. Jeff will be joined on the webinar by Lyle Radke, Director of Fannie Mae’s Collateral Policy and Strategy team as well as John Brenan, Chief Appraiser for Clear Capital. Click here if you’d like to reserve your seat for the webinar, Understanding Appraisal Flexibilities During Covid-19.
Buzz: Can we have your background in the appraisal industry?
Jeff Allen: I’ve been a part of the weird, wild world of valuation since 2012 when I joined Rels Valuation as a Strategic Initiatives leader. Since then I’ve held a variety of roles with Rels and CoreLogic, before ultimately landing with Clear Capital in 2017 as EVP of Valuation Strategy. I get to focus all of my attention on innovation and R+D projects to try to improve our industry – a dream job.
Buzz: How has the COVID-19 affected your life and the way you work?
Jeff Allen: Not being able to be in our four offices, interacting directly with co-workers has been tough. Clear Cappers are generally a pretty extroverted and social bunch that enjoy each other’s company. We do 100% video chat so we can see each other’s faces – that definitely helps, but it’s not the same.
The one positive change is that it’s emboldened us as a company to sprint very quickly on some important projects that we know can help during COVID. Having the teams almost entirely focused on a few high priority and urgent projects has taught us how fast we can move when we work like this.
Buzz: What sort of impacts have you seen to appraisers and the appraisal industry?
Jeff Allen: Appraisers are understandably wary about interior inspections, as are homeowners. As the GSEs have allowed temporary flexibilities that enable alternative alternatives – and some states have layered in outright prohibitions of interior appraisal inspections – we’ve seen a massive shift towards the use of desktops and Exterior Inspections from our customers. This is a shift we wholeheartedly endorse, in the name of appraiser and consumer safety.
Buzz: What do you think about the FHFA and GSE policy changes? Do they solve the challenges facing appraisers?
Jeff Allen: The changes are extremely helpful, and surely were not easy for the GSEs to decide on and implement, given the complexities of the processes they manage. They deserve a lot of kudos for jumping in to offer solutions.
By allowing appraisers to utilize other data sources (such as Occupant-provided data and photos) to gather the information they need to produce a credible appraisal, the GSEs have helped reduce the number of in-person interactions and created the opportunity for new tools to be developed that keep appraisers safe and efficient while still accessing critical information.
Buzz: Is using data from an “interested party” like a homeowner even allowed?
Jeff Allen: It is absolutely allowed under the GSE guidelines and has been clarified multiple times in the docs and FAQs they provided with the announcement. We believe it’s not just allowed – it’s essential to the development of a Desktop or Exterior Inspections report during these times. Providing an appraised value with no recent interior information or pictures creates serious credibility and customer experience issues.
Buzz: You launched a homeowner inspection tool called OwnerInsight, how does this tool help in the current situation?
Jeff Allen: Appraisers need interior information to keep their businesses moving but need to get it safely. Without OwnerInsight, homeowners and appraisers would face a manual and confusing back-and-forth, trapped in email and phone calls with unclear requirements and no fraud mitigation. Or maybe even worse – live “video inspections” that require scheduling, frustrate both sides and are awkward and time-consuming.
The key to what makes OwnerInsight unique is its simplicity. It guides homeowners through a logical, easy-to-follow process of taking geo-tagged photos and answering a few questions that have been specially designed to not confuse or overwhelm them, while still ensuring an appraiser gets everything they need to complete a credible appraisal. Appraisers get back a clean, consistent, high-quality report with no effort, and can stay focused on what they do best.
We’re providing OwnerInsight at no cost and it can be used by any appraiser, AMC or lender in the country. We offer free support by phone and email as well.
Buzz: What are some best practices around incorporating data from an “interested party” into the appraisal process?
Jeff Allen: Fraud mitigation is key. An appraiser needs to be able to validate that the information they’re receiving is accurate and credible, and that the photos they’re viewing are recent – and aren’t photos the homeowner grabbed online of someone else’s mansion.
For the home occupant, it’s critical that the tool the occupant uses be easy to use for a layman to grasp. It can’t be a “form.” It can’t descend into technical appraisal talk. And it needs to provide friendly guidance throughout the process to ensure a high-quality output.
Buzz: Some lenders are still ordering interior inspections, are you seeing the policy changes get adopted?
Jeff Allen: It’s varying from lender to lender, but more and more are moving towards proactively applying the alternative products – rather than only using them only as a backup plan if the initial interior attempt wasn’t successful. We expect that trend towards Desktops and Exterior Inspections to continue to grow.
Buzz: Do appraisers need to be on any specific tech or software to use OwnerInsight?
Jeff Allen: OwnerInsight works with all platforms, browsers and devices. Ordering an inspection from a homeowner is as simple as visiting GetOwnerInsight.com and filling out the order form. The final report output is a clean PDF that an appraiser can choose to easily into an appraiser’s final report with any of the major appraisal forms providers.
Buzz: How are homeowners responding, are they actually completing inspections?
Jeff Allen: The response has been very positive from homeowners – they’re concerned about safety right now as much as appraisers are. The response rate on Inspection requests is very strong. People like telling the story of their home, and they like having confidence that the appraiser is well-informed while completing their valuation.
Jeff, thank you for explaining this to us. We’ll look forward to more information and the product walkthrough during the FREE webinar on Thursday, April 23rd at 1:00 pm ET. If you’d like to reserve your seat for Understanding Appraisal Flexibilities During Covid-19, click here.
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