Before AppraisalVision, the industry was facing ...
Defect Rates within Reports
Impact on Operations and Financial Performance
While there are plenty of order management systems available today within the residential mortgage and appraisal industry, vendors are still exposed to undefined risk. Rather than building a new order management system or automated review platform, we set out to radically transform the home valuation process – with the long-term goal of shifting the mindset of an entire industry that has seen little to no change in decades.
Oftentimes, systemic issues present misplaced solutions without the proper macro-analysis. Institutions that actively accept and deliver collateral are unable to manage the process accurately, leaving them susceptible to loss. Mortgage industry participants are exposed to undefined Collateral Risk as it relates to the valuation process, and further, the appraisal report. Here at AppraisalVision, we analyze Collateral Risk as two types: Quality and Valuation. But there’s a major challenge associated with Collateral Risk – it’s hard to quantify exposure.
Hundreds of millions have been spent on technology to manage processes that were broken to begin with, causing the industry to fall short of efficiently minimizing risk. Lenders and appraisal management companies (AMCs) have become so desensitized to market inefficiency that they look at the products they’re purchasing and accept high defect rates as normal. But this presented us a unique opportunity. We’ve spent the last few years analyzing data and answering questions the industry doesn’t teach participants to normally ask. However, collecting and maintaining that data is – again – inefficient, and even if you could collect all the data, would you know how to interpret it?
Our system has analyzed over one million appraisal orders since we started this journey in 2017. The data associated with each appraisal order has derived the development of a true multitenant ecosystem. Through the integration of data, analytics, and machine learning from a multitude of sources, we’ve made the process SMARTER. Today, data is a commodity, and that data is the key to modernization. We’ve taken a reactionary process and transformed it into a proactive business model, leading us to a solution we refer to as Collateral Intelligence. Not only did we create a platform that helps you identify the problem, but we’ve created a platform that prescribes the best solution.
In our efforts to revolutionize the appraisal industry, through data and analytics presented in a user-friendly way, we’ve not only identified the inefficiencies in the home valuation process, but we’re dedicated to eliminating them. Because there’s a secret that everyone knows, but no one wants to admit - they’re the same inefficacies all your competitors face, too.
The network of brokers, lenders, AMCs, and appraisers that do business within our platform’s proactive, multitenant architecture capitalize on greater efficiencies than the industry has seen in decades. It took bringing all the industry and client data into a single-use platform, followed by a shift in our vision as a company, to rebuild an unconventional process around automation, instead of building automation around an inefficient process. From there, figuring out that customization isn’t always best or worth more. AppraisalVision is a digital platform built from the ground up by industry and data experts to bring clients, not the most familiar, but the best and most efficient user experience possible.
By implementing our platform, either as a substitute for or within your current system, we help provide transparency into the reality of your business and supply chain. Our vision is to reinvent the home valuation process by offering our clients innovative technology and a suite of alternative valuation products that mitigate risk for industry stakeholders, while giving them the tools they need to increase their Collateral Intelligence.
Meet Founder & CEO, Jim Cutillo
AppraisalVision started as a passion project to change the mindset of an industry by applying data, analytics, and machine learning to the process. Our years of analysis have led to game-changing software for the future of an industry, made available to vendors today.
Today, it takes longer and costs more to get a mortgage than it did in 2005 when I founded Stonegate Mortgage Corporation. This is crazy when you think about the amount of time and money invested into mortgage technology over the past 15 years.
We grew Stonegate from one to over 3,000 employees with $300 million in annual revenue, and successfully executed an initial public stock offering in 2013. This experience gave me unprecedented visibility into the challenges associated with the valuation process and what it takes to build technology that will truly transform an industry.
To do this, you must change the business model. To change a model, you must build technology that enables the change. When I decided to start AppraisalVision, I wanted to address the challenges associated with the valuation process. A lot of which lies around the management of third-party vendors and the need for modernization through alternative valuation products.