MLS Data for Sale - One Step Closer to Banks in Real Estate

By
Real Estate Agent with Coldwell Banker Vanguard Realty

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?

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About the Author: Sharon Alters works with her husband, Frank. They are in the top 5% real estate agents for production in the Jacksonville Florida area, specializing in Military and Corporate Relocation in the Fleming Island, Orange Park, St. Johns, St. Augustine and Beaches areas. Their local knowledge can help Relocating Buyers find the perfect lifestyle, whether it is a Castle on the Ocean, or a Cottage in the Country. 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Linda Sabo 06/15/2010 10:42 PM
  2. Kent Dills 06/20/2010 09:32 AM
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Show All Comments
Rainmaker
143,454
Linda Hinson
S & L Properties - Calabash, NC

I thought I was the only one who had become suspicious of MLS.  They dictate way too much.

Jun 15, 2010 10:27 PM #1
Rainmaker
977,087
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Linda, the MLS systems are paid by the members but dictate to us like they are the owners/originators of the property they guard. You are not alone!

Jun 15, 2010 10:33 PM #2
Ambassador
1,664,955
Richard Weisser
Better Homes and Gardens Real Estate Metro Brokers - Newnan, GA
Richard Weisser Coweta Newnan Homes for Sale

This sounds like it could be another dilution of the real estate brokerage industry.

featured in the Group "Whacked!!!"

Jun 15, 2010 10:36 PM #3
Rainmaker
977,087
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

That's what I'm thinking Richard. That the future of real estate could be sooner than we imagined. Thanks for the Feature!

Jun 15, 2010 11:15 PM #4
Ambassador
896,481
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Realtor - Ann Arbor Real Estate

Core Logic and RPR are in a battle for the sold data. They want it and are paying for it. Our board just voted to give it to both of them.

Not sure why, but they did.

The data is not protected anyway, only time will tell what effect this has on us. I do know they will not be selling us ads of any kind.

Jun 16, 2010 09:28 AM #5
Rainmaker
121,827
Jenna Dixon
DRA Homes (Atlanta, GA) - Marietta, GA
Associate Broker, NW Metro Atlanta

Yep, another company with their hand in the pocket of the agent & the brokerage.  I see a return to the old LISTING BOOK as the only way to combat this takeover of MY BUSINESS.

Where is the NAR on this?  Right...why should NAR care?  They collect money from Realtors already!

Jun 16, 2010 11:01 AM #6
Rainmaker
977,087
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Core Logic is not on our side, Missy. RPR should be since it is NAR sponsored. I just see it as another dilution of our value proposition. to financial institutions.

Jenna, apparently NAR is in the fight. RPR is a NAR product. Didn't know that!

Jun 16, 2010 02:09 PM #7
Rainmaker
122,426
Kent Dills
Broker, Dills Real Estate - Bellingham, WA
Real Estate 817-495-8028, Bellingham, Washington

Going to HAVE TO reblog this one Sharon.   I'm definitely not seeing the value add for us Realtors in this business decision by MLS organizations.

Jun 20, 2010 09:24 AM #8
Rainmaker
996,576
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Everyone wants a piece of the real estate pie...the problem is the pie is not that big and its filling has already been diluted!

Jun 20, 2010 09:40 AM #9
Rainmaker
264,277
Kristen Wheatley
The Maine Real Estate Network - Auburn, ME
Lewiston/Auburn Maine Real Estate Agent

Wow.  I'm not sure about other states, but CoreLogic would have to have Maine licensed appraisers to do actual appraisals here in Maine.  I'm not seeing their "logic" or rather I suspect this decision is not based on logic.  The story does not hold water since the fact that a home is on the water would be part of the PUBLIC info here.

This goes beyond this decision not helping Realtors.  The banks have done a lovely job so far of screwing up the entire economy and enough damage to real estate markets already.  Time for the public to get involved and revolt so that they are not allowed to further run amok and do more damage.

Jun 20, 2010 09:57 AM #10
Rainmaker
977,087
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Kent, you get it! I think it is incredulous that the MLSs are selling our data in this fashion and think we would be happy about it.

Exactly, Gary!

Sounds like Main protects itself better than other states, Kristen. Based on the AVM by CoreLogic, the bank did not order an appraisal but denied the loan because "there was no appetite for this type of loan in the secondary market." The fact was that their 'appraised value' was what the land alone was worth, not counting a house and swimming pool.

Jun 20, 2010 11:21 AM #11
Rainmaker
173,379
Richard Glesser
North Country Appraisal Services - Gaylord, MI

For 25 years in the appraisal business I have been telling "war stories" of bank actions which have been publically exposed during the past few years through the failing of the financial industry and the arrogance of the lenders even after public bailouts.  For the past several years I have refused to do "enhanced reviews" whereby the lenders require, not only a review of the original report, but also three additional comparables and all MLS and public data for the subject and all of the comps.  I have also actively campaigned to try to get other appraisers to follow this lead.  We know banks have a great inventory of homes not released into the market which is increasing daily.  While an additional source of Realtor income, we also know that the lenders have gone to BPOs rather than true appraisals to establish short sale and foreclosure values.  We know that the banks have tried before unsuccessfully to enter the real estate market.  We also know that the banks are prosecuting appraisers for nearly every foreclosed property (as I predicted several years ago with the increased requirement of E & O [providing a deep pocket for collection] and the afore-mentioned use of enhanced reviews [forcing consideration of additional comparables even if not the best and providing all necessary data with which to build a case]).  We know that Chase has flooded the state regulatory agencies with appraiser complaints on every foreclosure, likely to be followed by other lenders.  We know that the 2005 revision to the 1004 down by the lending industry extended liability for non-appraisal related information onto the appraiser.  We know that, according to another post in this group, lenders are now beginning to hold back a major portion of the mortgage broker's commission for up to a year to assure the loan doesn't default.  We know that appraisers have seen dramatically increased reporting requirements with lowering fee compensation.  We know that, with the implimentation of HVCC, many large lenders formed their own AMCs to control the appraisal process while skimming additional funds off the consumer through AMC fees and reduced appraiser fees.

Based on all we know, why would we even begin to believe that the lenders are not up to something which will further line their pockets.  They want to value and sell their properties internally!

Jun 21, 2010 12:32 PM #12
Rainmaker
977,087
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Richard, you have expressed what my gut told me when I read this and wrote this post. I wish it had been seen or flagged for a Feature because this is a very important topic that I believe the larger community needs to be aware of.

The banks most definitely want to value and sell their properties internally and the MLS systems are playing right into their hands while trying to pass it off as a benefit to their members. It will backfire when the MLS systems don't have enough members paying dues to support the salaries of the MLS employees!

Jun 21, 2010 01:47 PM #13
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Rainmaker
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