Scope of the Report
The report titled “The US Real Estate Appraisal Market: Size, Trends & Forecasts (2017-2021)†provides an in-depth analysis of the US appraisal market by value, by volume, by segments, by number of AMCs, appraisers tenure, etc. The report also gives an insight of the Canada addressable appraisal market opportunity.
The competition in the US Real Estate Appraisal Market is very fragmented, with several local and regional players procuring major share of the market. Further, key players of US real estate appraisal market, CoreLogic, Inc., Real Matters, Inc., Wells Fargo & Company and JP Morgan Chase & Co. are also profiled with their financial information and respective business strategies.
Company Coverage
CoreLogic, Inc.
Real Matters, Inc.
Wells Fargo & Company
JP Morgan Chase & Co.
? Executive Summary
Mortgage is a loan in which the house functions as the collateral. The banks or the mortgage lenders, loan a large chunk of money that is around 80% of the price of home that the borrower is required to pay back with interest over a set period of time. On failure of repaying the loan, the lender takes the home through a legal process known as foreclosure.
The mortgage lending process includes Lenders, Appraisal Management Companies (AMC), Appraisers, Title & Closing Companies, Title Agents, and Title Insurers.
An appraisal is a document that establishes an opinion of value for a property. Appraisals can be performed for a variety of reasons, although the most common reason is to help a lender establish the value of the collateral that is associated with a mortgage loan. In the US, most mortgage transactions require an appraisal, which needs to be performed by a certified appraiser.
Financial crises have played a critical role in shaping the relevant regulations to the appraisal process. The appraisal of a property could be done either in-house or through third-party known as Appraisal Management Company (AMC).
An AMC serves as a co-ordinator between the bank and a panel of independent third-party appraisers, who do the actual appraisal work.
The AMCs are either traditional AMC in which the appraiser visits the property site to assess the value of the property or Digitalized version of AMC known as Automated Valuation Model (AVM).
An AVM can come up with a property value much more quickly, and at much lower cost, than a human appraiser, by applying a valuation model of some sort against various sets of data. The AVMs has their own set of features and shortcomings that may evolve with time. The AVMs are at a niche stage of penetration in the US currently.
The US Real Estate Appraisal market has been on a declining trend since 2012; due to increased regulations in the industry, as a result of which several appraisers switch to other fields of work within a span of five years.
The US Real Estate Appraisal Market is further expected to depict a downward trend from 2017-2021 due to significant barriers to entry, low technology penetration in the industry, restricted demand for appraisers based on the region, etc. Yet there are certain trends in the industry such as US mortgage market scenario, poor working relations of AMCs with the appraisers, fragmented market share of mortgage lenders, etc.
1. Executive Summary
2. Introduction
2.1 Mortgage Industry: An Overview
2.1.1 History of Mortgages
2.1.2 Mortgage Lending Process
2.2 Appraisal Market: An Overview
2.2.1 The Rise of Appraisal Market
2.2.2 Appraisal Market by Mode of Appraisal
2.3 AMCs: An Overview
2.3.1 Comparison of AMCs
2.3.2 Type of AMCs
2.3.3 Type of AMCs: A Comparison
2.3.4 Features of Digitalized AMC (AVM)
2.3.5 Shortcoming of Digitalized AMC (AVM)
2.3.6 Digital Management of End-to-End Appraisal Process
3. The US Market Analysis
3.1 The US Mortgage Origination Market: An Analysis
3.1.1 The US Mortgage Origination Market by Value
3.2 The US Appraisal Market: An Analysis
3.2.1 The US Appraisal Market by Value
3.2.2 The US Appraisal Market by Volume
3.2.3 The US Appraisal Market Volume by Segments
3.2.4 The US Appraisal Market by Number of Active Appraisers
3.2.5 The US Appraisal Market by Active Appraisers’ Tenure
3.3 The US AMC Appraisal Market: An Analysis
3.3.1 The US AMC Appraisal Market by Value
3.3.2 The US AMC Appraisal Market by Number of AMCs
3.3.3 The US AMC Appraisal Market by Lender Size
3.4 Canada Addressable Appraisal Market Opportunity
4. Market Dynamics
4.1 Growth Drivers
4.1.1 Increasing Penetration in the Less Mature Regions
4.1.2 Increased Dependence on AMCs for Appraisal
4.1.3 Rising Technology Penetration in the Appraisal Industry
4.2 Challenges
4.2.1 Obstacles in the Appraisal Industry
4.2.2 Significant barriers to entry.
4.2.3 Shrinking Supply of Appraisers
4.2.4 Restricted Demand for Appraisers Based on the Region
4.2.5 Low Technology Penetration in the Industry
4.3 Market Trends
4.3.1 The US Mortgage Market Scenario
4.3.2 The US Appraisal Market Regulations
4.3.3 The US AMC Poor Working Relations with Appraisers
4.3.4 Digital and Traditional AMCs Platform: Appraiser Compensation Comparison
4.3.5 Fragmented Market Share of Mortgage Lenders
4.3.6 Other Trends in The Appraisal Industry
5. Competitive Landscape
5.1 The US Large AMC Appraisal Market Players by Market Share
5.2 The US Large AMC Appraisal Market Players: Competitive Analysis
6. Company Profile
6.1 CoreLogic, Inc.
6.1.1 Business Overview
6.1.2 Financial Overview
6.1.3 Business Strategy
6.2 Real Matters, Inc.
6.2.1 Business Overview
6.2.2 Financial Overview
6.2.3 Business Strategy
6.3 Wells Fargo & Company
6.3.1 Business Overview
6.3.2 Financial Overview
6.3.3 Business Strategy
6.4 JP Morgan Chase & Co.
6.4.1 Business Overview
6.4.2 Financial Overview
6.4.3 Business Strategy
List of Figures
Figure 1: Mortgage Lending Process
Figure 2: Appraisal Market by Mode of Appraisal
Figure 3: Type of AMCs
Figure 4: Features of Digitalized AMC (AVM)
Figure 5: Shortcoming of Digitalized AMC (AVM)
Figure 6: Digital Management of End-to-End Appraisal Process
Figure 7: The US Mortgage Origination Market by Value; 2011-2019 (US$ Trillion)
Figure 8: The US Appraisal Market by Value; 2012-2016 (US$ Billion)
Figure 9: The US Appraisal Market by Value; 2017-2021 (US$ Billion)
Figure 10: The US Appraisal Market by Volume; 2012-2016 (Million)
Figure 11: The US Appraisal Market by Volume; 2017-2021 (Million)
Figure 12: The US Appraisal Market Volume by Segments; 2016 (Percentage, %)
Figure 13: The US Appraisal Market by Number of Active Appraisers; 2012-2016 (Number of Appraisers)
Figure 14: The US Appraisal Market by Active Appraisers’ Tenure; 2016 (Percentage, %)
Figure 15: The US AMC Appraisal Market by Value; 2015-2021 (US$ Million)
Figure 16: The US AMC Appraisal Market by Number of AMCs; 2012-2016 (Number of AMCs)
Figure 17: The US AMC Appraisal Market by Lender Size; 2016 (Percentage, %)
Figure 18: Traditional and Digital AMCs: A Comparison
Figure 19: The US Mortgage Market Scenario; 2011-2019
Figure 20: The US Appraisal Market Regulations ; 2016 (Percentage, %)
Figure 21: The US AMC Poor Working Relations with Appraisers (Reasons); 2016 (Percentage, %)
Figure 22: Digital and Traditional AMCs Platform: Appraiser Compensation Comparison; 2016 (US$)
Figure 23: Fragmented Market Share of Mortgage Lenders; 2011 & 2016 (Percentage, %)
Figure 24: The US Large AMC Appraisal Market Players by Market Share; 2016 (Percentage, %)
Figure 25: CoreLogic Operating Revenue; 2012-2016 (US$ Billion)
Figure 26: CoreLogic Operating Revenue by Segments; 2016 (Percentage, %)
Figure 27: Real Matters Revenue; 2014-2017 (US$ Million)
Figure 28: Real Matters Revenue by Segments; 2016 (Percentage, %)
Figure 29: Wells Fargo Revenue; 2012-2016 (US$ Billion)
Figure 30: Wells Fargo Revenue; 2016 (Percentage, %)
Figure 31: JP Morgan Net Revenue; 2012-2016 (US$ Billion)
Figure 32: JP Morgan Net Revenue by Segments; 2016 (Percentage, %)
Table 1: Comparison of AMCs
Table 2: Type of AMCs: A Comparison
Table 3: Canada Addressable Appraisal Market Opportunity; 2016
Table 4: Traditional and Digital AMCs: A Comparison
Table 5: Obstacles in the Appraisal Industry
Table 6: Other Trends in The Appraisal Industry
Table 7: The US Large AMC Appraisal Market Players: Competitive Analysis; 2016
Table 8: Timeline of Real Matters, Inc.
