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» General
» Benefits to the Lender Community
» CompCruncher Specification
» Quality
» General
» The CompCruncher Application
» Pricing
» Training
» Creating Demand/Orders
» How It Works
What is CompCruncher™?
CompCruncher is a desktop application that allows appraisers to compete mainly against BPOs.
What is a CVR?
CVR stands for Collateral Valuation Report. A Collateral Valuation Report
(CVR) is an innovative, USPAP-compliant valuation product that is completed
by a licensed and certified appraiser who has local market knowledge, and
training sufficient to drive the powerful analytics that power the CompCruncher
product. A CVR is a best-of-class valuation solution for lenders who need
supportable values, efficient turn-around, and cost-conscious pricing.
What are the key elements a lender should know about the CVR report?
• Replace AVMs, BPOs and Review with CVR; perfect for portfolio or
de-minimus loans
• USPAP compliant
• CVR turnaround time is 24 hours, creating a CVR takes less than
an hour
• Multi-city testing confirm that CVR values come within 2-8% of URAR
(with inspection) value
• 12-month valuation forecast is applied to the concluded value
• Appraiser is trained and tested before using CVR
• Only a licensed and certified appraiser is allowed to create CVR
reports
What makes the CVR superior to other reports?
Quite simply, it is a better report in every way. A CVR is built on the
most robust data, including public record, MLS, sales, listings, flood,
aerial imagery, market statistics, and an appraiser-driven regression modeling
at the neighborhood level. No other report delivers all of the features
of a CVR.
Is the CVR appropriate for review work?
Yes. CompCruncher is perfectly suited as a lender review tool. It provides
support for adjustments to sales; the most appropriate sales; a ranking
and scoring of all sales within a market so that you can look at the sales
that were used by the appraiser and determine if they were appropriate.
You can easily use the CVR to evaluate sales with the most powerful data
available to any lender in the market.
For what other valuation services can the CVR be used?
Lenders, loan service companies and any business needing a valuation on
a property used for collateral purposes should use the CVR (i.e., Banks
providing a Home Equity Line of Credit (HELOC); Bail bondsmen needing a
fast collateral valuation on a loan; loan portfolio value verifications;
etc.)
Is the CVR an AVM?
No. An AVM is an automated product in which the vendor s value is pushed
to a lender. A CVR is entirely different. An appraiser analyzes the relevant
neighborhood and sales data, constructs a local valuation model with the
tools that we provide, and applies the results to sales and listings, reconciling
all of the analysis into a final indication of market value that is supportable
and transparent.
How quickly can a CVR be performed?
A CVR can be performed in under an hour in most cases. Generally speaking,
an experienced appraiser requires between 30-60 minutes to complete the
CVR report. The report can usually be delivered to a client in 24-hours.
Which partners will AppraisalWorld be working with?
AppraisalWorld will be working diligently with third party companies (appraisal
firms, AMCs, portals, etc.) and independent appraisers to ensure nationwide
coverage in all key MSAs.
How do I get my own appraisers qualified to perform a CVR?
We work with appraisers in markets throughout the country who can perform
CVRs. If you have an existing appraiser or panel of appraisers-we can help
them to become proficient in the CVR process. They would need to take the
education and training we offer at no cost on our CompCruncher.com site,
and after taking the test and performing the Mastery Modules we provide-they
can become proficient to provide the CVR to you.
Why should you consider a CVR?
CompCruncher’s strength is in managing and analyzing property data.
Its purpose is to assist appraisers in determining mathematically supportable
valuations in record time: A CVR can be created in less than an hour with
the accuracy and transparency of a complete appraisal. Its accuracy comes
from putting the appraiser in the driver seat and allowing the analytics
to driven by the appraiser. This is called Interactive Valuation Modeling
(IVM). The speed comes from providing all the data the appraiser needs instantly
on the desktop with the right tools to manage and analyze it. And on top,
the entire CVR report takes less then an hour to complete.
How does the appraiser determine the value of the home?
CVR uses the most sophisticated analytics available on the market. We support
our value by using Regression Analysis, sales comparables and listings from
public and MLS data.
Does the appraiser determine the neighborhood?
Yes, the appraiser defines the neighborhood based on their local area knowledge
of the neighborhood.
Where does the forecasting come from?
Forecasting comes from Vero’s econometric analysis, widely known as
the best in the business. This data is specific to the defined neighborhood,
and is based on a wide-ranging economic model. It considers a variety of
pertinent information that is helpful in understanding the nature of the
market.
Who was involved in creating the CVR report?
The CVR report and the application that supports it, was built by Bradford
Technologies and comprised of some of the nation’s leading appraisers
and software developers. The development team had one thing in common-they
strongly supported the concept of empowering appraisers with data, tools
and analysis that ultimately results in better, supportable and transparent
valuation for the lending community.
Is a CVR USPAP compliant?
Absolutely. The developers of the CVR included experts in the Uniform Standards
of Professional Appraisal Practice, and the product provides all of the
critical elements that are required to perform a compliant appraisal. In
fact, because an appraiser performing a CVR uses all of the available data
(whole market analysis)-the CVR can be considered more compliant with USPAP
than any other product currently on the market, including URARs.
What accuracy should you expect from a CVR?
Testing in key metropolitan markets has shown that the CVR report was within
2-8% of the 1004 value.
Who will perform the CVR?
A CVR can only be performed by a trained, local appraiser. AppraisalWorld
has developed a curriculum that is thought through a self-paced online course.
Once an appraiser passes a test and mastered the application in their local
market, they are available to perform a CVR. At the present time, we are
working with national firms to increase the depth of our trained appraisals
for availability in all key MSAs.
Can a lender become trained in performing or understanding the
CVR process?
If a lender has review appraisers on staff, we would recommend taking the
CompCruncher training course which we offer online at no-cost. In addition,
we can provide the training to underwriters or other lender personnel interested
in understanding more about the application and its ability to provide market
analysis and mitigate risk.
Are the appraisers trained on this product?
Every appraiser has to go through a thorough training program and pass a
test before they use CVR. This test consists of Regression analysis, statistic
and hands on training to use the CVR program.
Can a broker use this program?
CVR was designed to be conducted by a licensed and CVR certified appraiser
only.
What is CompCruncher™?
CompCruncher is a desktop application that allows appraisers to compete
against BPOs.
What is a CVR?
CVR stands for Collateral Valuation Report. This is a new USPAP compliant,
summary appraisal report that CompCruncher produces.
Why was CompCruncher created?
CompCruncher was created to help appraisers compete against BPOs and other
“alternative” valuation services. We believe appraisers should
be central to any property valuation service. After all, they are the trained
and certified experts in property valuation. With CompCruncher, appraisers
now have the tools to compete against BPOs and the “gap” valuation
services to recapture this lost market.
Why should you sign up for CompCruncher?
Alan Hummel, Senior VP – Chief Appraiser of Forsythe Appraisals stated,
“This [CompCruncher] is a game changer”. CompCruncher is a game
changer because it is the first program to provide the appraiser with Interactive
Valuation Modeling (IVM) capability to analyze markets and derive supportable
property valuations in record time.
Is CompCruncher an AVM product?
CompCruncher is not an Automated Valuation Model (AVM). CompCruncher has analytic functions (regression) to assist the appraiser in determining
a valuation.
Is CompCruncher an Appraiser-Assisted AVM?
CompCruncher is not an Appraiser-Assisted AVM, nor does it have a built
in AVM or any pre-built regression models.
Is CompCruncher an appraisal form-filler?
CompCruncher is not an appraisal form filling application like ClickFORMS.
It is a new class of software called “Computer-Aided Appraisal.”
Its focus is on managing and analyzing property data - not on filling out
a form.
Can I use the analysis results of CompCruncher in my 1004 reports?
At present, CompCruncher can export data into the ClickFORMS 1004 Report.
Can I use the CVR report for review purposes?
The CVR is a perfect format to use for appraisal review. With the focus
on comparable sales ranking and the ability to perform a retrospective report-the
CVR is an ideal format to review an appraisal.
Can I do reports nationwide?
CompCruncher is designed to be used in a local market by appraisers with
an expertise of that local market. However, using national public sales
records, CompCruncher can be used on a national basis. Some examples for
using CompCruncher are appraisal review and value reconciliation purposes.
Do I need to switch from my form-filling software to use CompCruncher?
You do not need to switch from your appraisal form filler to use CompCruncher.
CompCruncher is a standalone application that does not require nor depend
on any other software application.
Is CompCruncher web-based?
CompCruncher is not web-based. It is a desktop application. This allows
for easy access to your own property/comps and photo data.
I am a ACI/alamode user…can I use the software to produce
this CVR report?
CompCruncher was designed to be a stand alone product. It does not depend on
any appraisal form filling software to work.
How much will it cost to use CompCruncher and the CVR Report?
The cost is $25 per report. There is also a one time education and training
fee of $499 ($399 if you are an AppraisalWorld Premium Business Customer).
What is CompCruncher – in detail?
CompCruncher is a new class of software called Computer-Aided Appraisal software.
Its strength is in managing and analyzing property data. Its purpose is to assist
appraisers in determining mathematically supportable valuations in record time.
Its accuracy comes from putting the appraiser in the driver seat and allowing
the analytics to driven by the appraiser. This is called Interactive Valuation
Modeling (IVM). The speed comes from providing all the data the appraiser needs
instantly on the desktop with the right tools to manage and analyze it.
Where does the property data come from?
Bradford Technologies, the software company which created CompCruncher,
has contracted with multiple national data vendors to provide the data
and imagery necessary to properly analyze a market area. In addition,
CompCruncher can import MLS records as well as property data and photos
from your personal sources.
What data is provided?
Public record sales data (up to 500 sales per market area), sales and
listings from MLS, GPS verification and coding of all properties, aerial
imagery, street maps, flood maps, census tract and flood zone information.
Does the CompCruncher analysis work in areas where the data
is poor?
CompCruncher requires data - just as you do when you perform a traditional
appraisal in your markets. If there is limited data, an appraisal can be
a challenge. However, even in “data poor” areas, CompCruncher
will help you analyze and understand the data so you can arrive at a supportable
valuation.
I provide appraisals in a rural market in which there are very
few sales-can I still use CompCruncher in these markets?
Absolutely. Areas of limited data always provide challenges for appraisers.
What makes CompCruncher unique is its ability to provide insights and adjust
for changing market conditions. This gives an appraiser the ability to
go back in time with confidence so that market adjustments can be effectively
extracted from the market. Even with limited data, CompCruncher is a tool
which provides insight into your market. You have the same options available
to you that you would when doing a regular 1004 with limited sales.
I work in a non-disclosure state - how will this impact my ability
to use the CompCruncher application?
CompCruncher can use whatever data you have available in your market.
If no public record data is available, you can access your own comps database.
You can also access the MLS, which is usually far more robust in non-disclosure
states.
How does the MLS data get into CompCruncher?
MLS data is imported into CompCruncher from an MLS data download file.
The appraiser will log into their MLS, complete their search and then
import the data into CompCruncher. We have worked with over 750 MLS systems
to integrate the 1004MC service, CompCruncher will be using this same
technique to access the data.
The markets in which I provide appraisals have several different MLS providers. Can I use still CompCruncher, and how does the process work?
CompCruncher can accommodate the different MLS services that you use in your appraisal practice. Our policy is that we will help you map one (1) MLS provider during your training or up to 60 days from the date you get certified. However, we can provide you the documentation on how you can map your other MLS providers yourself.
Do I have to pay for the data?
You do not have to pay for the data. There is a not a separate charge
for the data. All the data is included with each use of CompCruncher.
Do I have to pay for software updates and/or tech support?
There are no additional fees for technical support (through 12/31/10)
or software updates. These services are included with the use of CompCruncher.
Software support will be available 8am-5pm Standard Pacific Time (PST).
How often will the software be updated?
We are already working on a new update. The data analysis and management
capabilities within CompCruncher will continually be improved to ensure
it remains the “best-in-class” application of its kind. We
welcome your thoughts and suggestions.
What is the difference between the CVR Report and Wells Fargo’s
new desktop product? And how would I compete with it as Wells Fargo pays
$55 per report?
The CVR is a superior valuation product. It is a summary appraisal report
with extensive market analysis and uses regression analytics to support
the value conclusion. It will take less than an hour to do and during that
time you will have analyzed up to 500 sales with three year sales history,
you will analyze sales and listings from MLS, performed a market analysis
and supported your value conclusion with regression analysis; all of this
in less than hour. With the Wells Fargo report, you will do everything
manually, retyping all the data into the online appraisal which is currently
not even USPAP compliant.
Do I have to pay to deliver the CVR report?
No. There is no charge for delivering the CVR report. At this time all delivery
services are included with the use of the CompCruncher application.
Do I have to pay for the CompCruncher application itself?
It’s free. CompCruncher cannot be purchased or licensed in the traditional
sense. To use CompCruncher all you need to do is get trained on it.
Is there a fee for each report I produce?
CompCruncher is billed on a per-use or transaction basis. The fee is
$25 per CVR. As report volume increases, the fee decreases. This is an “all-inclusive”
fee, meaning all the data, imagery, service connections, tech support
(through 12/31/10), software updates and report delivery are included.
How is the transaction fee collected?
a. If the appraiser receives the order from an AMC, the AMC will be
responsible for paying the transaction fee.
b. If the appraiser generated the order on their own, by servicing their
own clients, the appraiser is responsible for the transaction fee. The
transaction fee will be charged to the appraiser’s credit card.
What is covered in the $25 cost? What do I get for $25?
We have pre-purchased all the data for you. For each CVR report you
will be provided with up to 500 comps with 3 year history, imagery, location
and flood maps, MLS integration, 1004MC market analysis, regression analysis
tools and aerial photos. Plus unlimited tech support (through 12/31/10)
and software updates. Compare this to other vendors that charge $10 to
just transmit the order or $13.50 to just receive it.
What do I have to do to use CompCruncher?
You have to learn how to use statistics and regression analysis. You also have
to go through our CompCruncher training program to become proficient at applying
regression analysis and become skilled in creating the CVR Report itself.
Why do I need CompCruncher education and training?
Simply put - to gain competence in the analytics that power CompCruncher
and deliver the CVR. We have made commitments to lenders and appraisal
firms that CompCruncher Certified appraisers are the best at determining
collateral valuation at the local level. We are providing a valuation
analysis tool and robust data that has never been provided to appraisers
before. We feel very strongly that the best foundation for using CompCruncher
begins with an understanding of statistics, of regression analysis and
valuation modeling. Without this foundation, you will not be able to provide
the level of valuation service that we are promoting.
Do I have to pay for the CompCruncher Training?
Yes. The cost is $499. If you are a Premium Business member of AppraisalWorld,
the cost is $399, a savings of $100.
What is covered in the $499 CompCruncher Education and Training
program?
You will learn the basics of regression and statistics and how to apply the analytics to real estate. You will go through a 2 day training program with a team of CompCruncher experts and perform sample and local market valuations, so you gain the confidence and skills to use CompCruncher proficiently, accurately and profitably. As part of you training, we will also help you set up one (1) MLS provider to work with CompCruncher.
Can I create CVR reports without taking the education that you
offer?
No. You need a solid foundation of the analytics and the application.
Going through our education and training program is the only way to
certify that you have this foundation.
What is the training schedule?
The CompCruncher Training Program is structured so you can become certified
in 2 days of training. You will have to complete all the prerequisites
before you can attend the first training day. The second training day
will take place exactly 1 week after your initial training day. After
the second training day, you will be eligible to become certified.
What is taught in the coursework?
The initial focus in the training is on statistics, including measures
of central tendency, variance and the normal distribution. Descriptive
and inferential statistics are then covered. The focus is then on
regression analysis and building valuation models. An online test concludes
the statistics training. You must pass with a minimum score of 80%.
After the statistics coursework (and the other prerequisites) are completed, you will be able to attend the first day of training where an overview of the CompCruncher application is provided, followed by 8 sample appraisals (pre-defined properties). The second day of training (which will be exactly one week after the first day of training) covers 6 CVR reports in the appraiser’s own market that bring the student to proficiency in the use of the product.
How long does it generally take to get certified?
Generally you can complete the prerequisites in a day. The course work
is then divided up into 2 training days.
Day 1: Complete 8 sample appraisals
Day 2: Import your MLS and complete the 6 local appraisals
At the end of Day 2, you will become CVR certified after agreeing to
the terms and conditions, payment agreement, and providing your credit
card information (if required).
You will have 30 days to become certified after passing the statistics
and regression test. If after 30 days you do not complete the training
program, there will be an additional charge of $99 to continue. If after
60 days you do not complete the training program, there will be an additional
charge of $199 to continue.
What is the CompCruncher Return Policy?
If you are going through the CompCruncher training program and decide
that it is not for you, you may get a full refund as long as you are within
the regression training and have not yet started the first day of training.
Where are the CVR orders coming from?
The orders will come from lenders, loan service companies and any business needing
a valuation on a property used for collateral purposes. (i.e. Banks providing
a Home Equity Line of Credit (HELOC); Bail bondsmen needing a fast collateral
valuation on a loan; Appraisal reviews; loan portfolio value verifications;
The list is quite long.)
How many orders will I get?
The market for BPOs and alternative valuations is over a billion dollars.
Every month hundreds of thousands of BPOs and alternative valuations are
ordered. A CVR valuation is much better than a BPO. As clients start to
order CVRs instead of BPOs, we will try to ensure you get as many as you
can handle.
When can I expect to start receiving orders?
The CVR report is new to industry. We have pilot programs scheduled
in the next few months with some major players, but we do not expect orders
in large numbers until we have full national coverage. Once clients have
completed their tests and are satisfied that the CVR report is superior
to the BPO or alternative valuation service they currently order we expect
orders in large numbers.
Does the order process need to be HVCC compliant?
No. However, most orders are now going through HVCC compliant systems,
so you will probably get orders that are HVCC compliant. In situations
where you are providing a CVR for your own clients who are not subject
to HVCC, you can continue to provide them with your services in the same
manner you do presently.
Aren’t Credit Unions or similar regional/local banks obligated
to order appraisals through AMCs to comply with HVCC. Can they order directly
from appraisers?
HVCC is an agreement between Fannie Mae, Freddie Mac and the New York
attorney general. It was put in place to remove people who received a commission
from the loan from influencing the appraisal. This agreement only affects
loans that are going to be purchased by Freddie and Fannie. The industry,
realizing there was problem with appraiser pressure, has adopted the idea
and now it is widespread. However, if the loans are not going to be sold
to Freddie or Fannie, or it for a line of credit application or asset valuation,
HVCC does not apply and the credit union or local bank or major lender
can order directly from the appraiser if they choose. In fact, most Credit
Unions and local banks order directly.
Is AppraisalWorld going to become an AMC?
AppraisalWorld is not becoming an Appraisal Management Company (AMC). We
will however, be working diligently with third party companies (appraisal
firms, AMCs, portals, etc.) to ensure orders are delivered to all CVR certified
appraisers.
Do I get an exclusive territory?
No, you do not get an exclusive on a territory. However, we believe that
less than 5% of the appraisers will become CompCruncher Certified. So this
in itself will limit the number of appraisers in any given territory.
How much should I charge for a CVR report?
That is your decision and will depend on your market.
How is this different than the Zaio concept?
Our concept is entirely different than Zaio. We are providing appraisers
with Computer-Aided Appraisal software that will help them effectively compete
in the alternative valuation marketplace. We are not selling territories
or offering a franchise. We are providing a sophisticated, best-of-class
software tool-set for appraisers.
Who is doing the marketing?
AppraisalWorld and our appraisal firm partners will be marketing and promoting
the benefits of a Collateral Valuation Report (CVR) to the lending community.
Certified CompCruncher appraisers can also market this new valuation service
to their existing clients to gain additional business.
Do I have to create my own marketing materials?
No. Marketing materials will be provided for you. Once you are certified
to use CompCruncher, you will have access to all of our marketing materials.
You can use these materials to market to your local lenders, credit unions,
lawyers, and others who would have an interest in the CVR.
How long does it take to meet the requirements necessary to use CompCruncher?
Meeting the AppraisalWorld requirements take less than 4 hours and depends on how organized your credentials are for uploading into AppraisalWorld.
Meeting the education requirements takes between 4 to 8 hours, but the final exam must be passed in order to continue, so we recommend not rushing to ensure the subject matter is thoroughly understood. The exam may be re-taken twice.
Meeting the CompCruncher training requirement may be accomplished
in as little as two days. Each CVR report takes around an hour.
A little more in the beginning going down to 30/40 minutes with
experience. By the 10th report, most CVRs take less than 40
minutes to produce.
Why do we have these requirements?
We want only appraisers who fully understand the analytical
tools offered within CompCruncher. It is very important that
an appraiser understands the application and the analytics underlying
the application. CompCruncher is not an AVM that spits out a
value and then the appraiser agrees or disagrees with the value.
It is a tool that performs analysis on data. The appraiser is
in complete control, so the appraiser must recognize when the
data is bad and when the analysis is off so that adjustments
can be made to produce an accurate valuation.
