Since RPR’s formation as an Advisory Board in 2008, and its subsequent evolution into NAR’s wholly owned technology corporation in 2009 we have had two main objectives.
- Create a national database designed to reinforce the core competencies of NAR’s one million REALTOR® members through cutting-edge technology with advanced analytics and dynamic reports that agents and brokers can provide to their clients and customers.
- To provide accurate and timely information from this REALTOR® owned and operated technology system to the governmental agencies and lending institutions tasked with providing much-needed liquidity for home financing.
Today, RPR is available to the majority of NAR’s REALTOR® members. In 2011, RPR began to place greater focus on the communications and relationships needed to engage the entities responsible for mortgage liquidity. With the support of NAR’s Washington D.C. based Legislative Staff, RPR has been participating in numerous meetings with various governmental agencies and financial institutions. The purpose is to provide them with advanced analytics and valuation tools created by RPR to reinforce confidence in property valuations. This has the potential to bring stability to the market and thereby provide more capital to the housing industry. Response to our plan has been overwhelmingly positive. To highlight the level of interest and dialogue between the federal government and the NAR regarding RPR’s potential value, I would like to share some recent testimony by one of our NAR members. On June 28, 2012, Frank Gregoire a REALTOR® from St. Petersburg Florida, and 2011 Chair of NAR’s Appraisal Committee provided testimony before the United States House of Representatives Committee on Financial Services Subcommittee on Insurance, Housing and Community Opportunity. This hearing was specifically on Appraisal Oversight regarding The Regulatory Impact on Consumers and Businesses Regarding RPR and the Realtor Valuation Model® (RVM®), Frank testified:
“The unique value of RPR’s AVM is that it incorporates real-time market information from more than 400 Multiple Listing Services (MLS) nationwide, comprising approximately two-thirds of NAR’s membership. Much of this MLS data contains more than 10 years history on most properties. RPR’s AVM, known as the Realtors Valuation Model (RVM), is more accurate than most other AVMs when tested on both the national and local levels. Incorporation of MLS data combined with accuracy allows the RVM to offer the strongest value proposition in today’s market.”
He also stated:
“Through RPR, REALTORS® have access to comprehensive tools to improve comparable property selection to determine the tradeoff between days on market and price. This also allows for improved disposition of distressed properties based on local trends and connections to REALTORS® equipped to sell these unique properties. RPR is an investment in capabilities that ensure a REALTOR’S® expertise in local markets remains a critical component in improving and enabling a viable housing finance system from the point-of-sale to the mortgage investor.”
The “connections” between the REALTORS® vital role as the local market expert, advocate, and the ultimate information source at point of sale is critical to the lending process. The necessity to engage the mortgage industry in real-time analytics derived from the market level relationship has the potential to create the bridge needed to ensure the long-term equity in the housing market. In identifying this opportunity, RPR recently hired Patricia McClung, a 23-year veteran of Freddie Mac, to create and manage RPR’s relationship with the governmental agencies and lending institutions. She will be providing a series of articles outlining both the importance and the connection which REALTORS® have in assisting in the solution to the long term health and liquidity of the mortgage industry. You can read the first of these articles on the RPR blog. There will be a series of four articles over the next few weeks which will examine the REALTOR’S® role in helping to create the systems which can benefit not only your clients and customers, but the real estate industry as a whole.