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Clear Capital, a technology company working in the property valuation and underwriting space, has laid off 250 employees, a company spokesperson confirmed on Wednesday.
Company CEO Duane Andrews issued a statement saying the company “must now face a market that will represent the greatest challenge yet.”
Andrews sent the following to the company:
“We are seeing a seismic shift in the housing market, but more specifically in the appraisal and valuation industry. As today’s market cycle continues to progress and eventually recover, we do not expect to see the same mix of product volume with the industry gravitating toward alternative valuation options, as supported by recent policy changes.
We have the data, analytics and technology in place to support this shift and enable widespread adoption among mortgage lenders. The opportunity ahead requires us to take further measures and reimagine the future of Clear Capital. To ensure we have the right teams in place to execute on our plans and take advantage of this shift, we are restructuring our organization to allow for greater agility today and in the future. Our focus and investment will be on products and services that meet today’s market needs and technology that will support future growth as the industry continues to modernize.”
Clear Capital is headquartered in Reno, Nevada, with operations in Truckee, California. The company’s software supports mortgage lenders in a wide range of lending approval workflows, namely appraisals and valuation requirements.
In March of 2022, it deployed a new desktop appraisal solution, which employs a panel of certified data collectors — real estate agents or brokers approved by Clear Capital — to provide property information and photos that supplement data from public sources, helping appraisers complete accurate desktop appraisals, Inman reported.
“The recent additions of desktop appraisals to Fannie Mae and Freddie Mac’s selling guides were an important milestone for our industry, as the desktop option can help deliver more timely appraisals while mitigating appraiser capacity restraints and helping to standardize property data collection,” Andrews said at the time.
To further enhance how it assesses and ensures the integrity of property data, Clear Capital acquired digital floor plan company CubiCasa in 2021. CubiCasa’s mobile scanner provides real estate photographers, staging professionals, interior designers and contractors a sub-five minute solution for acquiring space dimensions and construction insight.
Clear Capital said it would use CubiCasa’s technology to establish consistent measuring standards and improve property data accuracy throughout their product line.
“Clear Capital’s executive team is voluntarily reducing their salaries as part of the company’s overall effort to reduce costs and retain team members,” a company spokesman told Inman.
The company is only the latest in a now months-long spree of staff reductions in the real estate industry, spanning proptech in all categories to the industry’s largest brokerage brands.
