CoreLogic Partners With MLS Systems
The article in DS News yesterday about CoreLogic's new partnership with some MLS Systems around the country has me wondering how long it will be before banks take another giant step towards the business of real estate.
"Through this innovative program, an MLS licenses its listing data for use in a variety of new risk management products for mortgage lenders, servicers, and capital markets, CoreLogic explained.
Until now, MLS organizations have lacked a safe and easy way to generate additional value for their members by applying their listing data outside of the real estate transaction, CoreLogic said. And as the same time, lenders have lacked access to critical listing information that would help make better and faster lending decisions, the company said."
Up until now, MLS organizations have protected their private information for their paying members. Yes, MLS data is distributed via portals and syndicated, but it is the Public version. CoreLogic will be receiving all the information privy only to MLS members.
CoreLogic's Information Has Been Woefully Inadequate In The Past
A couple of years ago we had a waterfront listing that was a pre-foreclosure and short sale. The buyers couldn't get a loan with a bank using CoreLogic because the appraisal came in low. I spoke with CoreLogic and a representative from the bank, contending the appraisal. It was an AVM. They had used houses in the neighborhood NOT ON WATER to come up with the valuation of the property.
The CoreLogic employee admitted that their data was limited and old, but that was the best they had. The bank stuck with them and would not listen to us.
With MLS Data, CoreLogic Can Do BPOs and Appraisals
If CoreLogic has MLS data, it can do BPOs itself ~ no more need for a Realtor® to be paid.
If CoreLogic has MLS data, it can do drive-by appraisals itself ~ no more need to hire an appraiser.
If CoreLogic has MLS data, they can handle a lot of the foreclosure work inhouse and hire fewer Realtors® to market their properties.
If CoreLogic has MLS data, banks may be emboldened to make another run to break into the real estate market.
If MLS Data Can Be Sold to CoreLogic, why not Zillow?
When MLS Data is up for grabs for a fee, is Zillow next?
How is it benefiting their members if it takes away their business? It may benefit the MLS, but what about the agent doing BPOs or the appraisers doing drive by appraisals?
Is the future here?
I'm not about halting progress, but this looks like a slippery slope to me. It looks like another stab to dilute the value of real estate professionals.
What say you?