IRR-Residential 2nd National Conference a Success!

Article posted May 24th, 2007 on www.appraisalbuzz.com:

Irr-Residential Affiliates Gather In Scottsdale For Second National Conference

SCOTTSDALE, Ariz. – IRR-Residential managing directors and owners gathered on May 3 and 4 in Scottsdale, Ariz. for the firm’s second national conference. With 56 affiliates providing the highest-quality valuation solutions in 42 markets across 20 states, IRR-Residential has demonstrated meteoric growth since its launch in July 2006.

IRR-Residential’s conference afforded affiliates the opportunity to share best practices in the residential appraisal business. Topics included:

Bottom-Up / Top-Down Sales & Marketing – Corporate executives provided tips about the best way to use IRR-Residential’s proprietary tools to sell valuation services locally and to serve local clients national valuation needs;

Employee vs. Independent Contractor Business Models – Wisconsin affiliate Bill Druck shared his expertise about the relative merits of building an appraisal business with employees versus independent contractors, focusing on cost, control and quality;


Commitment to Quality: Quality Control Processes & Procedures – This panel discussion, led by affiliates Bob Reamer, GAA (Michigan), Tony Reese (Michigan) & Larry Finn (Florida) (all members of the standards & operations committee), set out new quality control requirements for affiliates, designed to differentiate IRR-Residential from its competitors;

Operating a Residential Appraisal Business Discussion – Economic Decision-Making, The Role of Technology, Personal Marketing and Client Selection & Management – Frank Lucco, SRA (Texas), Bob Reamer, GAA (Michigan) and Scott Burdette, SRA (Texas) led a discussion on ways to increase operational efficiencies, and

Putting Words into Action via Business Planning – In this final session, affiliates were encouraged to undertake specific, measurable actions prior to the next conference to improve their bottom line.

“The greatest strength of IRR-Residential is the combined knowledge and experience of our affiliates,” said Charles Brettell, senior vice president of operations. “Our full-day best practices sessions provided an unparalleled opportunity for the best and brightest appraisal business owners to gather and share information about what makes them successful in their local markets.”

“Since joining IRR-Residential not only do I have the tools to compete for new business, I also have the tools to make my business more efficient,” said Bob Reamer, GAA. “By sharing ideas and information with other appraisal business owners I have been able to increase my net margin in the first quarter of 2007 in a contracting market. The investment I have made in my business through franchise fees has allowed me to increase the return from my business.”

“A great example of what happens when you bring together industry thought-leaders occurred during the quality control discussion,” said Brettell. “To ensure the highest quality standard in the industry, affiliates recommended, and corporate executives agreed to implement, the establishment of an appraisal quality committee to conduct annual peer reviews on a random basis of all offices in the system.”

IRR-Residential will hold its next conference in mid-October in Memphis, Tennessee.

About IRR-Residential

IRR-Residential, LLC is a national appraisal organization, formed in July 2006, to respond to the consolidation of lenders and centralization of processing residential appraisals. It brings together high-quality, independently-owned residential appraisal offices into a national organization to provide lenders with local knowledge, experience and quality appraisals on a nationwide basis. Learn more about the company at www.irr-residential.com.

The Future of the Appraisal Industry

Recent "Editor's Corner" posted on Valuation Review, www.valuationreview.com

(4/6/2007)

Earlier this week, Valuation Review reported that AMCO chairman and CEO Edward Davidson had signed a letter of intent to sell the Cleveland-based appraisal management company to a group led by Bob Rosing.

Rosing told us this week he couldn’t comment on the proposed transaction and AMCO officials declined additional comment until a difinative agreement is reached.

Rosing previosly served as served as president of SIRVA Relocation until July 2006, when he entered into a separation agreement with the company. He acted as a consultant until Dec. 31, 2006, when his separation from the company became final.

The pending sale of AMCO is a reminder of the ebb and flow of fortunes in the settlement services industry, and of the growth and demise of business models that may serve well for a time, only to fall away as demand for new delivery methods surfaces.

Earlier this week, I talked to Jeff Schurman, executive director of TAVMA. He had just heard the news when contacted by Valuation Review. While he said he couldn’t comment on the specific deal, he noted such moves aren’t surprising.

“More and more of the independent companies are being bought by the larger corporations,” he said. “There is a definite move in that direction.”

There are several factors at work that could be cutting into the market for some smaller AMCs.

The phenomenal growth of the subprime market in the last decade, and its ignominious fall from grace in the past 12-months has taken a toll on many of the business models that have surfaced in recent years.

Many large subprime originators use large centralized underwriting centers, which in turn have relied on national vendor management models to provide those centers with a multitude of settlement services, including valuation services.

Subprime represented a good growth business for vendor managers, who found themselves losing their core business to national lenders who took their vendor management in-house, or increasingly relied on automated bundles for their home equity lending.

What does this all mean for appraisers? The valuation industry is primed to reinvent itself over the next decade. What started out as a profession of one-man shops has largely evolved into a vast web of vendor management company-driven enterprises. It is destined to morph into something quite different again, as legislation forces lenders into a more arms length relationship with the appraisal profession.

Who will come out on top in the future? As always, the entrepreneurial spirit who can visualize the future before the rest of us get there will be the one to understand and carve the path to the next model that will best serve an industry that strives for national growth on a localized product.

Valuation Review was the first to report on the AMCO sale, giving you the latest news from the valuation industry. Stay tuned to Valuation Review as we go on a hunt for businesses that represent the wave of the future in the valuation world.

Homeowners surprised at assessments - IRR-Residential quoted as valuation experts

TRAVERSE CITY — The housing market is flat or in decline throughout Michigan, so Dorothy Roush wants to know how Garfield Township's assessor determined that her home's value jumped almost $12,000.
Then there's Ray Reamer of East Bay Township, who saw his assessment jump by $41,300.
Homeowners like Roush and Reamer began receiving assessment notices last week. Many were surprised to see both a hefty tax increase based on the rate of inflation and double-digit increases in their property assessments.
Home values in the Grand Traverse region were relatively stable in 2006, with variations anywhere from a five-percent reduction to a three-percent increase, though most were around zero, said Robert Reamer, president of IRR-Residential Veri-Tech Appraisal.
Figures from the Traverse Area Association of Realtors show average home prices dropped about 1.5 percent in 2006, while the state as a whole dropped about 2.3 percent.
But area property tax assessors can't use most of the sales information from 2006, according to state law.
Assessors use sales studies to determine a percentage increase or decrease in property values by neighborhood. State law sets the study period at two years, running from April 1, 2004, through March 31, 2006, for current figures.
Traverse City Assessor Deb Chavez said assessed values almost always lag behind sale prices. When home values shoot up the gap widens, and when they drop, assessments catch up.

IRR-Residential Update (3-07)

March 28, 2007

All-

We recently have had a few inquiries about how everything is going at Corporate. We are currently working on a communication strategy that will maximize the potential of keeping everybody in the loop. Part of this strategy includes this new communication site, www.irr-residential.blogspot.com. With a little help from all of our Affiliates we are hoping to turn this site into a location where everyone can find out the latest IRR-Residential news - not only at Corporate, but also with our Affiliates.

Questions that we have been primarily asked have been in terms of appraisal orders received, and how the new IRR-Connections platform is working. A couple of words come to mind: very busy and very exciting. Mark Oliver has been working hard to gain trust and build valuable relationships with national lenders. Our operations and quality assurance teams have been busy learning and using the platform.

We are in a trial period with our newly acquired clients. With most, we are receiving orders that are more or less in towns that generally aren’t even added to maps because of their small size. Our Vendor Ops team is doing a great job filling these orders. Also, they are building great confidence in IRR-Residential as a brand name. We are now starting to see more orders coming through and in more populated areas.

So far, orders have been sent to 14 Affiliates, and we are very pleased with how easy the IRR-Connections system has been to use. There is a long road of relationship building ahead of us, and we all hope you are as excited as we are for the following weeks, months and years to come as partners.

Below is a very enthusiastic Press Release that went out recently about our progress in case you missed it.

Regards,

IRR-Residential Staff




LENDERS REACT POSITIVELY TO IRR-RESIDENTIAL’S
NATIONAL TECHNOLOGY PLATFORM

Westwood, Kan. (March 12, 2007)—The reaction from lenders was positive and immediate to the launch of IRR-Connections, a technology that allows IRR-Residential unlimited capacity to automate the delivery and management of residential property valuations nationwide. IRR-Residential is the only organization of independently owned and managed residential appraisal offices with this capability.

“We began receiving appraisal orders immediately after IRR-Connections was launched on February 5th,” said Mark Oliver, senior vice president of business development for IRR-Residential. “Lenders like the idea of an appraiser-centric organization with national processing capabilities.”

With IRR-Connections, lenders can order residential appraisals nationwide through a single point of contact. The Web-based system is flexible and designed to meet the needs of a variety of customers through its centralized order processing and delivery system.

“Appraisals are a critical component of loan originations,” said John Wood, president and chief operating officer of IRR-Residential. “We provide a streamlined process for lenders to place large numbers of orders nationwide. During February, we placed appraisal orders in 25 states.”

IRR-Residential is unique in the industry because of its appraiser oriented approach. The company utilizes as its foundation a franchise affiliation with more than 45 locally owned and operated residential appraisal firms. Currently the offices are located in 35 markets and 17 states with plans for 100 offices by the end of 2007. It also has a vendor panel of approximately 5,000 appraisers to provide service in areas where there is not affiliate coverage.

IRR-Connections also provides significant advantages to IRR-Residential affiliates.

“As an independent appraisal firm, I simply could not afford national marketing and this type of technology,” said Scott L. Burdette, SRA, managing director, IRR-Residential Valuation Consultants, Ft. Worth, Texas. “As a result, my ability to market and provide services to regional and national clients was limited. Since affiliating with IRR-Residential, I already have had the opportunity to participate with my colleagues nationwide in performing residential appraisals for national lenders.”

About IRR-Residential
IRR-Residential, LLC is a national appraisal organization, formed in July 2006, to respond to the consolidation of lenders and centralization of processing residential appraisals. It brings together high-quality, independently owned residential appraisal offices into a national organization to provide lenders with local knowledge, experience and quality appraisals on a nationwide basis. To learn more about IRR-Residential, visit www.irr-residential.com or call 913-261-1800.

Our Affiliates say it Best!

"With IRR-Residential I now have all the tools to compete, grow, recruit and manage my business in a manner that would never be possible independently. I am now excited about the business at a time when I was considering an exit strategy," Bob Reamer, IRR-Residential Veri-Tech Appraisal.



"I’ve been an appraiser for 20 years and have seen the trends in the mortgage industry reduce the volume of work available while increasing the appraiser’s liability and responsibilities without any meaningful increase in fees. The appraiser-centered IRR-Residential model promises to give appraisers a “fighting chance” to compete and win back the appraisal business that’s been eroded over the past several years. I’m especially excited about the top-notch corporate team that’s been assembled and that promises to make IRR-Residential a decisive force on the national appraisal scene," Norbert Schulz, IRR-Residential Appraisers & Consultants.



"I came in thinking that this would be a great way to increase exposure and volume. What I did not realize was how the amount of interaction with the other managing directors, and discussing best practices would improve my business and make me an overall better appraiser," Tony Reese, IRR-Residential Reese Appraisals.

Affiliate of the Month

This months "Outstanding Affiliate" goes to Larry Finn of IRR-Residential Zenith Appraisals in Florida. Larry offered corporate two very noteworthy contacts in areas of marketing and technology. Larry's marketing contact got us in touch with the author of Appraisal Scoop.com and enabled us to have a posting that will bring recognition and awareness to our brand name. He also had a contact that works at Apex and we are now working on a corporate discount package towards tablet PC's and some sketch drawing functionality. These types of contact will be of help to everybody going forward. Congratulations Larry, keep up the good work!

IRR-Residential Selects ATM’s Industry-Leading Vision 4 Platform to Automate Appraisal Management Nationwide

Pittsburgh, PA and Westwood, KS (December 4, 2006) -- ATM Corporation of
America, a leading provider of settlement solutions to large, national mortgage lenders,has announced today that IRR-Residential, LLC, a national residential appraisal organization, will use a version of its Vision 4 technology to accept, distribute and manage appraisal orders nationwide. For ATM, IRR-Residential’s decision is unprecedented as this will be the first organization of independently owned and managed residential appraisal offices to take advantage of the automation that its technology delivers. With this engagement, ATM opens a new market for its services as it continues to build on the momentum of several large-scale client engagement wins in 2006, including Equifax and Home Connects, a subsidiary of GMAC Residential. Beginning in early 2007, IRR-Residential will offer its clients and affiliate members access to the technology through an Application Service Provider (ASP) model to increase its ability to automate the assignment and delivery of property valuations. Through use of ATM’s appraisal module, IRR-Residential will be able to increase the volume of appraisal assignments it can handle, while achieving cost efficiencies. This shows how ATM’s Vision technology can be used as an end-to-end settlement system, or for discrete tasks within the mortgage closing process. This flexibility gives ATM’s Vision 4 technology broad industry appeal as it is designed to meet the needs of a wide variety of customers. "As a growing company, we were looking to partner with an industry leader whose proven technology would give us a competitive advantage, while increasing our process efficiency and productivity," said John Wood, President and COO of IRR-Residential, LLC. “ATM’s Vision technology will allow us to increase our geographic reach and reduce both service time and costs through automated distribution and reporting of appraisal assignments. This increased capacity for valuations will be an important part
of our growth platform as we look to attract new lender customers and affiliate partners." ATM’s Vision technology was chosen after an extensive IRR-Residential market search. IRR-Residential plans to utilize the appraisal module of the Web-based Vision 4 system to handle more requests faster, while gaining the benefits of a paperless process, as assignment distribution, scheduling and reporting are handled via an Internet-based system. The Vision 4 technology will allow IRR-Residential to address lenders’ requests for centralized appraisal order processing and consolidated, single point-of-contact service delivery to add value for customers. “We are excited to partner with IRR-Residential, and to offer its affiliates the opportunity to take advantage of the benefits that our Vision technology can deliver,” said Francis Azur, president and CEO of ATM. “In doing so, we will be able to help IRR-Residential maintain the high standards it has set for quality in assignment fulfillment, while supporting the company and its affiliates’ business growth. For ATM, we’re continuing to build on the momentum we’ve generated this year. We’ve been able to establish our technology as industry leading, while opening new markets to companies, such as those with a business model similar to IRR-Residential.” ATM’s VISION system manages the mortgage closing process to include clearing the title; scheduling the closing; preparing the HUD-1 and other mortgage-related documents; disbursing the funds; and recording and issuing the final insurance policies. The Vision 4 System uses electronic loan documents, known as Paperless Loan Files(PLF), which are enabled through the software system's VisionSure(SM) technology. This technology creates a centralized Web-based document management system, which significantly reduces hard copy mortgage documentation from 80-120 pages to a simple mortgage agreement and deed filed with the local county clerk.
About IRR-Residential IRR-Residential, LLC is a national residential appraisal organization that launched operations in July 2006. The Kansas City-based firm currently has 40 locally-owned and operated residential appraisal offices in 24 markets in 15 states. It plans to grow to several hundred offices in the next five years. IRR-Residential was formed to respond to trends in the residential appraisal industry. As lenders consolidate, they are migrating to centralized processing of appraisals instead of contracting directly with local appraisal providers. IRR-Residential has a national sales and marketing team dedicated to developing relationships with regional and national clients. For more information on IRR-Residential, visit www.irr-residential.com.
About ATM Corporation
ATM Corporation, holding company for Vision Global Solutions, LLC, provides
settlement services to large, national mortgage lenders and is the country's leading provider of consulting and technology services to lenders looking to build their own
settlement services subsidiaries. ATM employs more than 600 full-time employees at its national operations center in Moon Township, PA, a Pittsburgh suburb, and contracts with more than 20,000 attorneys, appraisers, abstractors and settlement service providers throughout the United States. Companies that license ATM's Vision
technologies or have chosen ATM to build national settlement service subsidiaries
include Countrywide, Citigroup, GMAC Mortgage, Key Bank, E*Trade Mortgage, Navy
Federal Credit Union, Accredited Home Lenders and Equifax.
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