During the pandemic, the percentages of new mortgages held by Fannie Mae and Freddie Mac reached 60%. This is a considerable rise from the 42% in 2019. With half of the mortgages going to these Government Sponsored Entities (GSEs), there is an opportunity for Realtors® to be part of the solution.
An appraisal – the heart of a lender’s ability to pass a loan on to Fannie or Freddie. The traditional appraisal process can take a week or two to order and cost the buyer $600 or more. For a long time, beginning with Broker Price Opinions, GSEs have been reaching out to real estate professionals to train and authorize them to perform a lighter version of the appraisal that can be done in a few days, at a price point that is significantly less than a full appraisal.
One of the leaders in working with real estate agents to collect data for GSEs is Clear Capital. The product they created is called Universal Data Collection. It offers a mobile app that can be utilized by their fleet of more than 5,000 real estate agents to capture the property information required by GSEs with uniform appraisal data that meets the criteria of both Fannie and Freddie (think one form, that works for both). Clear Capital have partnered with CoreLogic where the product is made available in their platforms to assist with the creation of more modern valuation and appraisal workflows. They have also integrated with CubiCasa for floor plans and property scans.
I interviewed Kenon Chen, EVP of Strategy and Growth at Clear Capital about the program. It is excellent for real estate agents to pick up some extra money in the process of selling homes. Agents can sign up for the service and get certified at the following website – https://www.clearcapital.com/broker. One shocking lesson I learned is that a CubiCasa scan done by the listing agent cannot be used for the program. It needs to be redone because GSEs only accept scans taken after the acceptance of the offer. Crazy right? A scan that is less than 30 days old (most homes trade in less than 30 days on market) must be repeated to satisfy the GSE requirements. My hope is that the National Association of REALTORS® can have a talk with Fannie and Freddie about leveraging the property scans that agents perform and enter into the MLS. Moreover, MLSs would benefit home buyers by capturing all the data needed for GSE underwriting at the point of listing input.
Never the less, the bridge between realtors and lenders is spanning a shorter gulf with this inspiring new offering from Clear Capital. May progress continue.
Please see below for the full press release.
Clear Capital Expands Relationship with CoreLogic in Support of Modern Appraisal ReadinessClear Capital’s Universal Data Collection product available to be ordered, fulfilled through CoreLogic Valuation Workflow SolutionsReno, NV – April 20, 2023 – Clear Capital, a national real estate valuation technology company, today announced an expanded relationship with CoreLogic, a leading global property information, analytics and data-enabled solutions provider, to assist lenders in modern valuation and appraisal readiness. Through an existing integration, Clear Capital’s recently launched Universal Data Collection (UDC) product is now available to be ordered and fulfilled through CoreLogic’s suite of Valuation Workflow Solutions.Together, Clear Capital and CoreLogic are supporting industry-wide modern appraisal efforts by providing the ability for lenders to order from Fannie Mae or Freddie Mac without needing to recollect data. CoreLogic’s platforms make workflow and order management easier for lenders, and with UDC, lenders can ensure that data standards are met for both the Fannie Mae Property Data Collection product or the Freddie Mac Property Data Report. This provides quick and easy transfer to the agency with the loan program that best meets the borrower’s needs.“The key to appraisal modernization is wide-spread adoption, and alongside CoreLogic, we are expanding access to modern appraisal tools with the aim of pushing the mortgage industry closer to this new standard,” said Kenon Chen, EVP of Strategy and Growth at Clear Capital. “We have been long-time partners with CoreLogic, and we are looking forward to continuing to collaborate as we advance appraisal modernization together.”Clear Capital’s UDC property data collection solution provides interchangeability and less complexity in management of loans, as well as ease of adoption by integrating with CoreLogic’s Valuation Workflow Solutions. In addition to the flexibility provided, UDC is available at a fraction of the cost of a traditional appraisal, and completed in half the time.“At the root of our alliance is simplifying ordering and creating an efficient set-up and implementation process for lenders,” said Bob Jennings, Executive of Platforms, Collateral, & Risk Solutions at CoreLogic. “Clear Capital and CoreLogic have supported the industry together for some time now, and this expansion of our relationship is a natural next step as the industry embraces a more modern approach to valuations.”CoreLogic’s Valuation Workflow Solutions power over 1,400 of the nation’s mortgage lenders. Clear Capital currently serves more than 70 market leaders through integrations into CoreLogic’s platforms, and have delivered tens of thousands of monthly valuation orders across loan origination and loan servicing clients.About Clear Capital
Clear Capital is a national real estate valuation technology company with a simple purpose: to build confidence in real estate decisions to strengthen communities and improve lives. Our goal is to provide customers with a complete understanding of every U.S. property through our field valuation services and analytics tools, and improve their workflows with our platform technologies. Our commitment to excellence – wherever it leads, whatever it takes® – is embodied by our team members across our brands (Clear Capital, CubiCasa, and REO Network) and has remained steadfast in this pursuit since our first order in 2001.About CoreLogicCoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.