Posted on February 06, 2023
Some appraisal management companies (AMCs) now send “data collectors” to take video, pictures, and measurements of properties instead of an appraiser. They may use cameras or applications from smart phones. The data is then sent to the AMC who determines whether an appraisal is necessary or whether the financier will grant a waiver to the appraisal requirement. If an appraisal is required, the AMC shares the data with an appraiser who generates the appraisal.
Traditionally, appraisers collect all information they use in an appraisal. Beginning in 2019, Freddie Mac, a quasi-government company that guarantees and helps fund mortgages for home purchases, started a program called property data report (PDR)(link is external) and a pilot program to research the efficacy of separating the data collection from the appraisal. Fannie Mae has since followed suit.1 These pilot programs are not nation-wide, yet, but they will likely expand. The intent is to make data collection more standardized, to reduce costs, and to further ensure impartial and objective appraisals.
Data collectors(link is external) are persons hired by an AMC, not the appraiser. To date, there are no federal or state regulations on data collectors, though Freddie Mac requires that they have a background check, but does not specify what that should be. Appraisers are required to have a background check, and REALTORS® have the NAR Code of Ethics, local board oversight, as well as a tight-knit community of professional colleagues to observe and censure bad behavior. This lack of oversight for data collectors means that the consumer cannot assume a minimum level of professionalism and should vet the data collector who will enter their home.
Some companies have recruited REALTORS® to act as data collectors. This provides an opportunity for some extra income and leverages the agent’s market expertise. However, legal grey areas remain and are not yet clear. Before entering work as a data collector, one should investigate these legal questions and discuss with their broker:
These are just a few, but not an exhaustive list of ways you should protect yourself and your privacy.
You can read the original blog post here .
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