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CoreLogic Acquires a la mode technologies, LLC

Posted on: 04/12/18

April 12, 2018 08:02 AM Eastern Daylight Time

IRVINE, Calif.--(BUSINESS WIRE)--CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today announced the completion of the Company’s acquisition of a la mode technologies, LLC (a la mode). a la mode provides subscription based software solutions to more than 40,000 appraiser professionals across the United States. The software solutions provided by a la mode facilitate the aggregation of data, imagery and photographs in a GSE compliant format for the completion of U.S. residential appraisals. a la mode, founded in 1985, is headquartered in Oklahoma City.

“The acquisition of a la mode is an important next step in the development and scaling of our end-to-end valuation solutions workflow suite which includes data and market insights, analytics as well as data-enabled services and platforms,” said Frank Martell, CoreLogic president and CEO. “a la mode tools and solutions help to make our professional appraiser community more productive and efficient. The addition of a la mode to our existing workflow and technology offerings also provides CoreLogic with a seamless digital platform for ordering, preparing, quality assuring and delivering property valuations and allows us to expand the connectivity between a number of the major constituencies in the mortgage underwriting ecosystem.”

The acquisition of all of the equity of a la mode is expected to be modestly accretive to CoreLogic’s 2018 revenue and adjusted EBITDA, excluding certain purchase accounting adjustments and one-time integration-related costs.

Click HERE to read official response letter from alamode. 

 

About CoreLogic

CoreLogic (NYSE: CLGX) 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.

CORELOGIC and the CoreLogic are trademarks of CoreLogic, Inc. and/or its subsidiaries.

Safe Harbor/Forward-Looking Statements

Certain statements made in this press release are forward-looking statements within the meaning of the federal securities laws, including but not limited to statements that (i) the a la mode acquisition will advance the Company’s valuation solutions capabilities; and (ii) the a la mode acquisition will be modestly accretive to the Company’s 2018 revenue and adjusted EBITDA, excluding certain accounting adjustments and costs. Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include the risks and uncertainties set forth in Part I, Item 1A of our most recent Annual Report on Form 10-K, including without limitation: difficult conditions in the mortgage and consumer lending industries and the economy generally; compromises in the security of our data, including the transmission of confidential information or systems interruptions; our indebtedness and the restrictions in our various debt agreements; and our ability to realize the anticipated benefits of certain acquisitions and/or divestitures and the timing thereof. The forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

CLGX-F

 

Contacts

CoreLogic
Media Contact:
Alyson Austin, 949-214-1414
Corporate Communications
newsmedia@corelogic.com
or
Investor Contact:
Dan Smith, 703-610-5410
Investor Relations
dan@corelogic.com

Are Appraisal Management Companies Value-Adding?

Posted on: 04/12/18

Excerpt:

Are Appraisal Management Companies Value-Adding? – Stylized Facts from AMC and Non-AMC Appraisals


In this paper, we study whether there are any systematic quality differences between appraisals associated and unassociated with appraisal management companies (AMCs). We find that compared to non-AMC appraisals, AMC appraisals on average share a similar degree of overvaluation despite being more prone to contract price confirmation and super-overvaluation. AMC appraisals also share a similar propensity for mistakes, despite employing a greater number of comparable properties. Our evaluation employs relatively simple statistical comparisons, but the results indicate no clear evidence of any systematic quality differences between appraisals associated and unassociated with AMCs.

1. Introduction
Appraisal management companies 1 gained prevalence after the recent financial crisis as intermediaries with the ability to prevent lenders from directly pressuring appraisers—thereby improving appraisal quality and adding value to the appraisal industry. Whether they have realized such potentials is now a growing debate. AMC advocates believe that in addition to acting as firewalls between lenders and appraisers, AMCs contribute a quality assurance step to the appraisal process. Some advocates may believe additionally that the thriving of AMCs represents an increasing specialization of appraisal management and appraisal services 2. Each of these circumstances would lead to consumers acquiring less biased and better quality appraisal reports and consequently to lenders achieving reduced credit risk as well as reduced management time and effort. Those on the other side of the debate believe that AMCs offer no quality assurance contribution and in fact tend to hire the least expensive rather than the most suitable appraisers. They also claim that AMCs set unrealistic deadlines, effectively rushing appraisal reports. Under these circumstances, rather than having higher quality appraisals, AMCs could in fact reduce the overall quality of appraisals, and in doing so, increase credit risk in the long run. Opponents also cite the fact that because AMCs take a cut of prevailing appraisal fees, their prevalence has caused and will continue to cause an appraiser shortage, the result of which, ceteris paribus, is increasing appraisal costs for future borrowers…

Read entire document HERE.

 

Published: 3/26/2018

Author:

​Jessica Shui, Economist; Shriya Murthy, Economist

Abstract:​
In this paper, we study whether there are any systematic quality differences between appraisals associated and unassociated with appraisal management companies (AMCs). We find that compared to non-AMC appraisals, AMC appraisals on average share a similar degree of overvaluation despite being more prone to contract price confirmation and super-overvaluation. AMC appraisals also share a similar propensity for mistakes, despite employing a greater number of comparable properties. Our evaluation employs relatively simple statistical comparisons, but the results indicate no clear evidence of any systematic quality differences between appraisals associated and unassociated with AMCs.

FTC vs CoreLogic - OCAP's Response

Posted on: 04/12/18

How does this impact us? Read: Why this matters to appraisers.

 

Office of the Secretary
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, DC 20580

Re: In the Matter of CoreLogic, Inc., Docket No. C-4458

We are independent, unaffiliated non-profit organizations that represent the professional real
estate appraisers in our respective states. We believe that FTC’s proposed actions regarding
CoreLogic’s non-responsive actions is fully justified. Our more serious concern, however, is the
related increasing presence – and potential dominance – by CoreLogic of the entire breadth and
depth of the real estate collateral valuation process. The issue is not unfair competition –
appraisers are typically users of many of CoreLogic’s databases – but rather the integrity of the
valuation process.
CoreLogic controls a variety of the property sales and information databases and search
programs that appraisers depend upon for information on comparable sales and market
conditions, such as REIS, Realist, AppraiserSuite, and RealQuest. CoreLogic provides flood
zone certifications through FloodCert. CoreLogic owns the leading provider of residential and
commercial construction cost data, Marshall & Swift. CoreLogic owns two of the “portals” for
ordering and transmitting appraisals, FNC and Mercury Network. CoreLogic has just acquired
one of the largest and most popular appraisal software firms, a la mode. CoreLogic is the source
of the automated appraisal review program LSAM, which is widely used by large and small
lenders and appraisal management companies. CoreLogic also owns a national provider of
appraisal education and symposia, Columbia Institute. And CoreLogic is a national appraisal
management company, having purchased LandSafe and RELS. CoreLogic of course was also
the subject of the FTC action with regard to its purchase of DataQuick Information System and
this request for comments.
The effect of CoreLogic’s expansion into all these areas is that one company controls the
ordering of real estate appraisals, the data that the appraisers rely upon for their analysis, the
transmission of the final reports, and the review of those reports. The valuation of the collateral
held to support a significant portion of the nation’s mortgages is therefore in the hands of a
single company. Appraisers, who are held to high standards of independence, objectivity, and
due diligence are increasingly concerned about the inherent dangers of this concentration of
control and its effect on the integrity, both real and perceived, of the valuation process.
We urge the FTC to examine this concentration and take appropriate measures to insure the
safety and soundness of real estate transactions.

Very truly yours,

National State Appraiser Organizations
"The Network"

California Coalition of Appraisal Professionals

Tennessee Appraiser Coalition

Rhode Island Real Estate Appraiser Association

Real Estate Appraiser's Association, California

Real Estate Appraisers of Southern Arizona

Virginia Coalition of Appraiser Professionals

South Carolina Professional Appraisers Coalition

Ohio Coalition of Appraisal Professionals

West Virginia Council of Appraiser Professionals

Mississippi Coalition of Appraisers

Maryland Association of Appraisers

Oklahoma Professional Appraisers' Coalition

Louisiana Real Estate Appraisers Coalition

Coalition of Appraisers in Nevada

Northern Colorado Association of Real Estate Appraisers

Appraiser's Coalition of Washington

Illinois Coalition of Appraisal Professionals

North Carolina Real Estate Appraiser Association

Michigan Coalition of Appraisal Professionals

FTC Wants Public Comments on CoreLogic alleged Federal Law Regulations

Posted on: 04/11/18

ATTENTION APPRAISERS!
The FTC wants public comments about CoreLogic's alleged violations of federal law prohibiting unfair or deceptive acts or practices or unfair methods of competition.

Follow the link below to read what has transpired. The meat of the issue is discussed on page 56.

Comments Due: Monday, April 16, 2018

Click HERE to read the FTC disclosure. 

Click HERE to submit your comments. 

Call to action to oppose Senate Bill 2155

Posted on: 03/19/18

Call to action to oppose Senate Bill 2155

Dear Ohio Appraisers,

We are placing an immediate nationwide call to action to oppose Senate Bill 2155 which was passed by the US Senate on March 14th.

Senate Bill 2155 has a provision, (sec 103) which allows a bank to waive an appraisal in rural communities. This will be detrimental for homeowners and communities in rural areas. A loss of income will also occur for appraisers who cover rural counties.

The Independent Community Bank Association has been hard at work promoting this bill. To see what they have been sending to the legislators, click here.

This bill has bipartisan support of 25 cosponsors and we need everyone to contact their representatives and express your concerns with sec 103. We need to take action quickly as this bill will be discussed and voted on within the week.

It does appear we have consumers on our side. The AFR (Americans for Financial Reform) conducted a poll and an overwhelming majority of Americans oppose Senate Bill 2155 and rolling back Dodd-Frank. See the poll results here.

This does not mean that Congress will listen, so we need to be vocal NOW!

A sample letter/email to use as a guide has been written by Lori Noble. See the sample letter here or below.

We also ask that you make a phone call daily and ask to speak with your Congressman/woman. If they are not available be sure to voice your demands to the staffer, making sure to tell them you are a constituent. Staffers count the number of calls that come in on a specific issues so the more calls, the bigger impact. Let’s ring their phones off the hook!

To find the contact info for your Congressman/woman in your district click here.

To see the entire Ohio Legislature directory, click here.

Sample letter/email written by Lori Noble from Virginia Coalition of Appraisal Professionals:

The Honorable (Name)
Office Address
Washington, DC 20510

RE: S.2155, Section 103, False Claims of Appraiser Shortage

Dear Congressman (Name),
I am writing today about the Economic Growth, Regulatory Relief, and Consumer Protection Act, referenced as S.2155. As a Certified Appraiser in (STATE), I am concerned about Section 103 and specifically the exemption of appraisals for real estate located in rural and underserved areas. There are a few points we would like to share as a professional valuation provider in our rural regions.

Mortgage lenders are trying to convince lawmakers there is a shortage of real estate appraisers in our country, specifically in designated rural markets and this simply is not true. There has always been a limited number of appraisers in remote regions but area appraisers respectively serve those sectors of the market place. Section 103 would allow banks to blanket more than (% coverage) percent of the state. To claim there are no appraisers in that much territory is simply false.

The problem is, the passage of the Dodd-Frank Act caused a proliferation of Appraisal Management Companies (AMC’s), although not required by law. It is noted publicly that AMCs control more than 80 percent of mortgage market appraisals in the United States. The perceived intent was for them to act as intermediary between lenders and appraisers to eliminate coercion, protect consumers, and provide fully independent appraisals to clients. The opposite effect has happened and it is harming consumers with excessive fees, causing inferior quality appraisals, and fake claims of an appraiser shortage. Lenders and third-party AMC affiliates caused the market push back because of poor business practices and not investing in the cost of doing business in rural regions. To offset the negative economic factors affecting appraisers who will not work for 50 percent the market rate (which lender/AMCs call reasonable), they have created a false appraiser shortage narrative that seriously harms the safety and soundness of housing markets and the public.

I appreciate that community banks and credit unions want to be involved in appraisals, but am concerned about the possible gaming of the system as proposed. Without clarification, one can imagine the scenario where a bank would contact three out of area appraisers, offer them a low fee to be declined, and move forward with no neutrality to their internal valuation processes.

Section 103 defies the logic, intent, and the spirit of FIRREA for which it was written. Further investigation is recommended for transparency, real facts about allegations of a fake appraiser shortage, and where fees paid by consumers to third party lender affiliates for appraisals is going. I assure you, not all is going to appraisers and there is not accountability for the difference.

Thank you for your consideration. Appraisers are more than willing to serve our community bank and credit union customers across the country. Please contact me at (phone number) to discuss further as I am available to answer any questions you may have regarding this very sensitive housing economy matter.

Sincerely,

Name

address

email

phone

We ask that you spread this information to every appraiser in your network, inside Ohio and out. The House will be voting on this bill sometime next week so we urgently need your help.

 

Sincerely,

The Board of Directors

Ohio Coalition of Appraisal Professionals

 

Posted on: 12/31/69