It is rapidly becoming apparent that the auto accept industry is killing the REO business forcing companies to do everything possible to combat them. The latest announcement by RReview that they will be moving away from broadcast orders says it all. I cant understand why agents feel they need to take every single order the only real winners are small BPO companies that love the way there orders are taken quickly ( at low fees to most of the time)
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Its all just a game, the exterior BPO's we provide aren't really worth much any way, as far as the valuation goes. without seeing the interior and without knowing what repairs are needed how accurate is the exterior valuation anyway? So it is just a joke, a paperwork shuffle. The BPO's we complete satisfy some type of requirement for the lender or servicer's file. The exterior BPO's we complete are basically just to give the lender/servicer an idea of value and if the home is salable. The true value can't really be determined until interior access is gained and repairs and condition are made part of the process.
I don't use auto accept and don't complete near as much BPO volume as I used to. I can say based on the many calls a month I receive from RRReview asking me to take the rural out of the way orders that no one else wants to complete, I could stay pretty busy. The plus side to that is they usually can approve a $125.00 fee over the phone. Anything higher and they have to get approval.
So hold out for RRR to call and request a fee that you are comfortable with, do less get paid more.
You are so right, sme agents who can't seem to sell real estate live off these BPO's and REO's, to then I say get out of the business and get a REAL job. I suppose it is a way to get cash flow for small companies
Auto accept is becoming a thing of the past and replaced by "Order Capture Services" (accept rate is $4). Someone will monitor your email 24/7 and accept BPO orders on your behalf. And what about the BPO Virtual Assistants? These virtual assistants will pull comps, establish a price opinion (from sitting at a desk in another country—virtually) and complete the BPO for $8.00, add just $2 for a rush job. The BPO business has become an industry within itself. Some agents are acting as the middle man by outsourcing 100's of orders per week. Oh yeah, there's also a service that will take the photos for $10 a house. When you break it down, $4+$8+$10=$22, a $40 BPO rate (of which $18 goes to the agents bottom line) isn't so bad if you're doing 300-400 orders a month. Do the math, that's $7,200 a month, 86k per year. Maybe the "fools of the business", as they are often referred to as, have us all fooled!
I wonder if Fannie and Freddie have a clue who's really doing their valuations.
http://compassroadsrealty.com/
I have filed numerous complaints with RRR concerning this matter. They consistently deny there is a problem. I received the following e-mail from RRR on the 9th of February 2015:
Dear Valued Partner:
Recent changes to our auto assignment process may have caused you some confusion or frustration. These changes may have increased the number of offers you received which has also increased competition for orders. After analyzing the impact, we have decided to make the following changes to our order solicitation process:
1. Provide an exclusive email solicitation to the top rated agent/appraiser who is in nearest proximity to the subject property.
2. Allow that agent/appraiser 30 minutes to accept the order before offering the order to additional agents/appraisers.
We want to do what we can to promote fair competition while still ensuring that orders are being completed by the closest and highest rated agents/appraisers. This should also eliminate any advantage gained by using outside acceptance software or services that are not endorsed by Residential RealEstate Review. We expect to implement this change in February 2015.
Thank you for your continued partnership and your patience during this transition.
RRReview Management Team
You're absolutely correct in your research of RRR assignments. BPO orders are being highjacked. I've submitted and followed up with similar complaints to RRR. Since Aug-Sept. of 2014, after ten years of completing BPO assignments for RRR. I have not been able to accept one assignment, because, they're already taken. I've seen more than 600 assignments come to my email since Oct. 2014; I've not been able to accept one assignment. I was also approached by the same auto accept company to open a pay-pal account and pay $4.00 per order captured. I will not do it. I've concluded that RRR knows exactly what's happening and are in on the charade. Just yesterday, several assignments came to my email and just for fun I tried to accept them and get the same message "Unfortunately, this assignment is no longer available". I've blocked all emails from RRR from this day forward. It's not worth the aggravation. I give up and am frustrated in trying to work with them and think, I've been a preferred agent with RRR for 10 plus years. Herman
We all have heard it before from RRR. They say it again and again that they have the problem corrected or hard at work on it. We all were told the "new" google capsha would resolve the problem. Did it? NO! And to be 100% honest RRR has been less successful then every other BPO provider, in their "attempts" to eliminate the problem. Why is it that they fail more so then the others? Here are a couple of facts that I have managed to uncover. I would bet that every time you went to accept a BPO from RRR you got the "Unfortunately" message. EVEN IF YOU WERE CLICKING ACCEPT WITHIN MILLISECONDS OF THE EMAIL, right? Even with auto accept the imput of the capsha would still give you time to at least get to and see the capcha, even if a computer is doing it. You probably would then get the I'm sorry message in red, but you would see the capsha. BUT you never even get to see the capsha.WHY? When you are fortunate enough to get a BPO it is probably an interior inspection or NOT the profitable local ones. WHY? So let's add this up. BPO taken quicker then possible and only the less desirable BPOs available, RRR is unable to fix the problem despite repeated statements that they have the fix. Now consider this. You were able to get your fair share of BPOs prior to August, Sept 2014 then it all changed. BUT we all know auto accept was around long before that and other BPO providers do seem to do a better job of keeping this under control better then RRR. Am I right so far? RRR is probably being honest when then say they are working with computer experts in attempting to resolve the problem. BUT what other fact do we know? Could it be because they OUTSOURCE a least the BPO portion of thier business to INDIA. We've all called and talked to "franK" and others attempting to resolve a BPO issue. What if the problem is NOT computer related at all? This is what I have discovered, thus far. A person named Rajan Patel registered a web site around August 2014. This web site is www.bpoorderaccept.com. They specialize in RRR capture and charge $4.00 per assignment. I am not a language expert but the home page seems like it was written by a person who has English as a second language. Also interesting is the only payment for this service they accept is PayPal. Any of you that have bught anything overseas will agree Paypay is the most common method of payment.. In case you are not aware that the name Rajan and Patel are both in the top 100 names in India. I contacted them under the guise of using their service and asked for proof of thier abilty to capture in my service area. They sent back a BPO order they said they got for a client, that BPO was one I had received and was unsucccessful even though I tried within a second. THEN shortly after the email I got another email from a BPOprocessors.com. THE ADDRESS OF THIS SERVICE PROVIDER IS IN INDIA as it is indicated on the email. The email says they have successfully processed over 562000 BPO's???? For complete service you can get the BPO and have them totally complete it, except taking pics, for a total of $12.00 between the 2 services. The average daily wages in India is $2-3 US dollars. Can anyone dispute this would / is a very tempting income sourse to those in India. To think they would be beyond reproach is just plain stupid.
I am saying that it is my opinion the problem is NOT computer related and these BPO orders are being sold directly from the outsource or someone within the outsourse provider that is working for RRR. I have furnished all this to RRR and was basically told it's not happening that way. I took it one step further and sent information to RRR parent company SPS, also located in Salt Lake City and got a phone call from RRR in Salt Lake City basically saying I was wrong and they have total confidence this in not happening AND under the new system it wouldn't be a problem anyway BUT, SHE SAID, WE ALL CAN EXPECT TO RECEIVE MUCH FEWER BPO ORDERS THEN BEFORE BECAUSE THAT IS HOW NEW THE SYSTEM WORKS it will only send to the top rated provider closest to the order address. What this could mean to us is they will continue to sell the BPOs as before BUT now we just won't know it's being done. Anyone who would like copies of the emails I have referred to email me at reoemporium@aol.com and I will gladly forward them.
BRAVO we need to put an end to these Auto Accept Firms. I work on it every week by informing all the major BPO companies with a list of Auto Accept Companies and their latest offerings. They'll go down someday and all the agents accepting orders using these Auto Acceptors will go down as well.
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