Welcome to the Voxtur earnings conference call. My name is John, I'll be your operator for today's call. At this time, all participants are in a listen only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you do have a question, press zero one on your touch-tone phone. As a reminder, the conference is being recorded. Now I'll turn the call over to Chief Investment Officer, Jordan Ross. Jordan, you may begin.
Good morning, everyone. Thank you for joining us for the Voxtur fourth quarter and fiscal year earnings call, where we will discuss our financial results for the period ended December 31st, 2021. Please note that our results were released this morning and can be accessed on SEDAR or on our website at voxtur.com. Joining me today are Executive Chairman Gary Yeoman, CEO Jim Albertelli, and CFO Angela Little. We will begin with prepared remarks and then move into Q&A. If we are unable to get to your question, you are always welcome to contact me directly at jordan@voxtur.com. Angela Little will begin by discussing our financial results. You will then hear from Gary Yeoman, who will outline our strategic vision, the milestones we've achieved, and our strategic priorities moving forward.
Finally, you will hear from Jim Albertelli, who will provide an update on the execution of our strategic vision through organic growth opportunities and operational improvements. Before we get started, please be advised that some of the information that we will share on this call may contain forward-looking statements. We caution you not to place undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations. Further, on today's call, we will report using both IFRS and non-GAAP financial measures. We use these non-GAAP financial measures internally for financial and operational decision-making purposes, as we believe that they provide a meaningful measurement of financial performance and valuation. These non-GAAP financial measures are presented in addition to, and not as a substitute for, the financial measures calculated in accordance with IFRS.
To see the reconciliation of these non-GAAP measures, please refer to our press release distributed this morning, May second, and our management's discussion and analysis, both of which are available at sedar.com and on our website at voxtur.com. A replay of today's call will also be posted on our website. Finally, please note that all references to amounts or currency during today's call are in Canadian dollars, unless otherwise stated. I will now turn the call over to our CFO, Angela Little.
Thank you, Jordan. Good morning, everyone, and thank you for joining us. Q4 was another strong quarter for our company. Consistent with earlier quarters in 2021, we continued to reinvest in the company and execute our strategic growth initiatives. This included the completion of the Benutech acquisition on December 30th, 2021. With that said, we are pleased to report that revenue and gross profit continued to increase on both a quarter-over-quarter and year-over-year basis. Q4 2021 revenue was CAD 38.7 million, which represents a 57% increase over Q3 2021 and a 548% increase over Q4 2020. Fiscal year 2021 revenue is CAD 95.9 million, which represents a 368% increase over fiscal year 2020.
Q4 gross profit was CAD 12.6 million, representing a 33% increase over Q3 2021, and fiscal year 2021 gross profit was CAD 37.3 million, representing a 300% increase over fiscal year 2020. Revenue from U.S. operations represented approximately 91% of the total revenue for fiscal year 2021, up from approximately 63% for fiscal year 2020. This is a result of the continued expansion into U.S. markets, including the APEX acquisition in 2020 and the Voxtur, Xome, and Benutech acquisitions in 2021. In addition to significant reinvestments in the company and five successful acquisitions during 2020, the company ended 2021 with positive Adjusted EBITDA.
Turning to the balance sheet, we ended the year with cash and cash equivalents of approximately CAD 41.5 million, leaving the company well-positioned to continue executing on its strategic growth plans. For 2022, our focus continues to be on revenue growth. We are beginning to see increased volumes in valuation, title, and default services as a result of the foreclosure moratorium being fully lifted on December 31st, 2021. We also anticipate significant continued revenue growth from new clients due to the ongoing sales efforts. As a result of the increase in revenue combined with efficiencies and synergies gained from the investments made over the last year, we anticipate positive Adjusted EBITDA during the latter part of 2022. I will now turn the call over to our Executive Chairman, Gary Yeoman, to provide additional insight as to the company's strategic focus.
Thank you, Angela, and good morning, everyone, and thank you for joining us. As you've just heard, we had a solid fourth quarter, and we are confident in executing our growth strategies. Over the last year, we've made considerable progress, including several important milestones that I'm delighted to share with you. From the start, Voxtur has had a multifaceted growth plan. This is the driving factor behind the company's enthusiasm for developing SaaS-based solutions to make the real estate finance ecosystem more transparent and accessible. When it comes to acquisitions, we take a very synergistic approach. The enterprise looks for suitable acquisitions that value leveraging data to reduce the cost and inefficiencies of current real estate transactions. More importantly, we look for opportunities to grow organically within each business unit, and you've witnessed the strategic integrations of newly acquired accretive technology. We completed the acquisition of Benutech in December.
With its subscription-based pricing model, this resulted in an immediate and significant infusion of property data into our growing repository and the addition of a suite of SaaS-based tools to promote growth in our title and settlement business unit through recurring revenues. As a preeminent source of innovative data solutions and technology applications for the real estate industry, we can leverage the Benutech data and analytics functionality across our business units, providing an opportunity for substantial growth in all areas. You may also recall we closed the RealWealth technology acquisition on October, which has repositioned to Voxtur Wealth. This acquisition accelerates the development of our asset management platform and direct-to-consumer strategy. Voxtur Wealth is a consumer and asset management platform that provides a comprehensive view and management of real estate assets. The proprietary investor-centric digital platform aims to transform consumer behavior by democratizing data, information, tools, and fiduciary support.
Every facet of a client's real estate investment will be transparent and validated, from the administration of home service contracts and suppliers to prevent financial elder abuse to an encrypted asset documentation repository. Voxtur can provide data-driven solutions to help homeowners and trusted advisors make better, more confident real estate decisions with this platform. We demonstrated our commitment to developing more SaaS-based assessment solutions with the launch of our mobile sketch application, resulting in the industry's first digitized mobile asset application in North America. These predictive analytics tools use Voxtur's vast data repository to confirm assessment values for customers, lenders, and assessors. We can leverage our sketch software to be used with both our property tax and valuation business alliance as a competitive differentiator. We have established ourselves as one of the market leaders in the real estate technology space, and we continue to see substantial traction in the marketplace.
We will continue this growth and prioritize expanding our data analytics capabilities. I'll now turn the call over to our CEO, Jim Albertelli, to highlight our execution and operational successes during the first quarter.
Thank you, Gary. Good morning, everyone, and thank you for joining us. We had a productive fourth quarter, as you just heard from Angela and Gary. 2021 was a year of formation for Voxtur as we concentrated on revenue development through creative, data-driven alternatives to establish technologies in the valuation, title, and property tax space. Uniquely positioned, Voxtur continues to add critical pieces to the enterprise as we serve as a single point of contact in the real estate industry. With multiple data sources, we provide comprehensive solutions. We are constantly evaluating all the components of our business to create the most comprehensive and effective toolbox to support the industry. We continue to target the entire lending life cycle and accelerate new growth by engaging with new clients. We have established our expertise with new products, new technologies, new leadership.
We are embracing strategic partnerships and white labeling technology to industry partners to promote further growth. Our business teams deliver these cloud-native SaaS solutions while cognizant of operational excellence, resulting in demonstrable client successes. We have assembled an amazing sales force that can sell products to capitalize on our land and expand organic growth strategy to new and existing clients. We have a strong pipeline and continue to increase our technology development and infrastructure to keep pace with this accelerated growth. Since we last met, we launched our lender direct appraisal platform. This Voxtur-verified technology allows the lenders to manage the entire appraisal process, resulting in a faster and more efficient operation. This revenue model incorporates both transactional fees from lender-driven orders and subscription fees from each participating appraiser. It also increases market demand because of its streamlined direct model, resulting in substantial revenue growth.
Voxtur's cloud-native, end-to-end encrypted, route-optimized, AI-enabled valuation data pipe continues to create efficiencies in the valuation space. It enhances the consumer experience, resulting in a seamless transaction between consumers and financial institutions. Our industry expertise allows us to anticipate the market's needs, and a deep understanding of data leads to a Voxtur innovative solution. The recent approval of desktop appraisals confirms our investment in automated and digital appraisal reports. With the acquisition of Benutech, the company bolstered the recurring revenues while expanding the Voxtur database, allowing for additional product launches. The development of this data ingestion engine was accelerated by adding validated data and intuitive SaaS tools designed to facilitate better data utilization. Our settlement services division has also had a productive quarter, focusing on creating additional operational efficiencies and continues to grow its client base.
We are investing in new technology to streamline the closing process and modernize the settlement services operation that Voxtur provides to mortgage company clients. Just this month, we saw a nationwide launch of Voxtur Settlement Services brand, which will lead to increased brand recognition for the Voxtur enterprise. Our property tax business continues its trajectory with the addition of several new U.S. clients, while successfully increasing revenue across the product lines, not only with our mobile sketch application, but the recently launched Real Property Tax Analytics product provides lenders, investors and most importantly, homeowners, transparency and insight into the accuracy of their most significant, home operating expense, their taxes. Also in the consumer channels, Voxtur Wealth is a platform that will deliver Voxtur data and SaaS-based tools to benefit consumers in managing their real estate assets.
We expect this to be another source of recurring revenue with both transaction and subscription-based pricing. As we look ahead, we are energized by the recent government mandates to make homeownership more affordable, reinforcing our thesis of a digital future, creating more efficient and cost-effective solutions for the lending life cycle. Many of you have seen the recent news of the update to the Fannie Mae Single-Family Selling and Servicing Guide, allowing for an alternative to title insurance. The new guidance spotlights the Voxtur AOL platform. A Voxtur AOL provides an attorney's opinion of title, backed by transactional liability insurance that follows the loan for the life of the loan and is issued by an AM Best A rated carrier.
The Voxtur AOL is provided in partnership with established real estate law firms in the industry and allows lenders to offer a low-risk alternative to traditional title insurance that supports Fannie Mae's housing goals. This initiative marks the first time attorney opinion letters have been produced with consistency and scale. These guideline changes represent a notable paradigm shift in support of more affordable homeownership. Voxtur is the center of that home affordability. This combination presents a unique opportunity for impactful change that will benefit consumers across the United States. Voxtur continues to build on the foundation and investments made in 2021 to create synergies and leverage real estate lending life cycle data, making homeownership more affordable and accessible. Voxtur expects considerable revenue growth from new and existing clients through 2022, consistent with our forward-looking guidance.
We expect to continue this tempo in all of our business units, and you should anticipate the announcement of additional strategic partnerships and resulting revenue increases. In closing, we're pleased with our progress during the fourth quarter and are confident in the outlook for the upcoming year. Thank you for joining us on this call today and your interest in our growing company. At this time, we'd be happy to answer any questions you may have. I will turn it over to the operator to open the Q&A.
Thank you. We'll now begin the question-and-answer session. If you do have a question, press zero, then one on your touch tone phone. If you wish to be removed from the queue, please press zero, then two. If using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you do have a question, press zero, then one on your touch tone phone. Our first question is from Fred Blondeau.
Thank you, and good morning. I just wanted to revisit your 2022 guidance announced on March 24. On the revenue expectation for 2022 of CAD 170-CAD 190, I was wondering if you could give us a bit more color on the contributions from licenses to MLS, settlement, and whether you have any acquisitions in your assumptions?
Well, I'll take that, Fred. It's Gary here, and certainly, I'll ask Angela to pipe in on a more specific basis. You know, as you have witnessed on past forecasts that we have, we, you know, chosen the path to be responsible and conservative with what we've done. With respect to the new offerings that Jim has highlighted, the vast majority of those new offerings were not included in the guidelines looking forward. Certainly, there were no inclusions of any acquisitions at all. We think that it is conservative. As Jim indicated, we're very buoyant, you know, on what is happening in the marketplace. We're making homeownership more affordable. We're certainly doing it more cost-effective, and certainly, the quality of the product is going to be there.
Because of our alignment to SaaS-based solutions, we can do it quicker, more affordably, and certainly more professional. I think that gives you the guidelines that you want. Angela, is there anything else you'd like to add to that?
Sure. Yeah. We are in the process of going through our Q1 review right now, and we will have those results out at the end of May, and it will be right on target for the range that we've provided in the guidance.
Mm-hmm. No, that's great. Thank you. I assume you don't have anything from the Fannie Mae announcement in your 2022 assumptions, and I was wondering, you know, how should we view, you know, expected revenue generation from the Fannie Mae announcement?
Jim, if you could, handle that please.
Certainly. Yeah. The engagement process as a result of the Fannie Mae solar servicing guideline change has already begun, as you could expect, with a rising rate environment and constricted supply, our clients, the lenders have had to get more aggressive in innovating. That's why I've said on prior calls to our investor community that there was a portion of Voxtur. There were a couple different components of Voxtur that are countercyclical that would be maybe counterintuitive to you in the real estate space. Because of the increasing rate environment, because of the constricted supply, we have been engaged by a number of tier one lenders and top producing mortgage companies across the country to look at our innovative solutions and begin to engage us in earnest.
What you should expect is that the initial testing and production will occur, you know, in this quarter. You should expect that it begins to ramp. We sign additional suppliers in Q3. You should see a meaningful impact in EBITDA and in margin being contributed in Q4, really setting the table for a pretty amazing 2023. That's the process that we're going through now is the question and answer period with the financial institutions, with the exploration, with the scale planning, with the testing. All that's going on now. You're right to pay attention to that Fannie Mae solar servicing guideline and expecting it to have a positive impact.
As Gary mentioned to you know, we couldn't zero in on the exact date and when that was gonna change. It was completely under FHFA and Fannie Mae control. So we didn't include it in a meaningful way in our 2022 guidance. You know, but it's very important to us as the management team, and I'll just reiterate what Gary said because it's just our thesis, and it's core to us. We really wanted to as we just shown you from 2021 and giving and providing the guidance and then exceeding that, but exceeding it in a reasonable manner, continued to focus for us is to be accurate, to stay ahead of it.
If this timeline gets accelerated, or as we sign clients, we'll make those announcements, and we'll adjust accordingly. That's the nature, and that's the mindset of the company to be conservative. We know that people are counting on us to achieve the goals, and we are focused on achieving those goals.
No, that's great. Thank you, and congrats on your successes.
Thank you, Fred. Thank you.
Our next question is from Christian Sgro from Eight Capital.
Hi. Good morning. I saw that Black Knight [crosstalk] reported a healthy uptick in foreclosure volumes in Q1, these past three months. I was wondering if you could provide an update on the default activity that you guys are seeing in the U.S. and how you think this could trend through the year?
Yes, Christian, this is Jim again. Yeah, I've got it. We saw the moratorium be released at the beginning of January of this year, and then the first foreclosure referrals in some time coming to the system. The slow ramp as a result of work being done behind the scenes with various government agencies working in tandem with lenders to evaluate all of those loans to make sure that they're appropriately referred and that each consumer has access to all the varying plans. It isn't that long ago, but if you recall going through the COVID pandemic, there were multiple attempts and different forbearance plans and different alternatives to foreclosure that were promulgated throughout the United States.
As a result of that, lenders had to be very careful as they begin the referral process to evaluate those. I expect that most of those evaluations and consolidations will be done by the end of Q2. That you should expect a Q3 and Q4 accelerator of default revenues, not just in our default technology management, but also in the bankruptcy environment, where we tie together consumers and the trustees and the mortgage servicing platform and the financial institutions to keep them in, basically reconcile all of those accounts simultaneously, protecting the lenders from liability and making sure that individuals' payments in the bankruptcy process are accurately and timely applied. Both of those efforts, overall default management technology as well as bankruptcy technology, should begin to accelerate substantially in Q3 and Q4.
That's why I also mentioned the countercyclicality of our business. You know, people think, oh, it's the mortgage business, and rates are up, and mortgage origination is down. The SFR business, the Single- Family Rental acquisition business, is still acquiring in the thousands and thousands of units. Many of our tools make them more cost effective. Increasing rate environment creates additional goal. Competition and innovation becomes essential for financial institutions to not only survive but to thrive. Remember, we have a Benutech asset we acquired that has lead generating technology to generate new leads, extremely important in a tightening market.
We also have, of course, the AOL reduced costs for disclosures, increases the competitive nature of our partners. At the same time, that's why I think it's the, you know, it's the best of times, and it's the best of times. On the other side, you also have the default technology. As rates tick up and these defaults are released, now you have default management and bankruptcy technology. You have innovation and additional proliferation of default technologies that should interplay nicely in Q3 and Q4 for the company.
Jim, if I could just also add to that, based on [crosstalk] c ountercyclicality, w e intend, obviously, as Jim indicated, to introduce our Real Property Tax Analytics platform to the United States starting in the second quarter and taking a more profound effect than the last two quarters. The one thing that everyone knows for sure, the certainties in life are two things, death and taxes. Managing the whole property tax payment platform, opining on the legitimacy of any assessments and taxes that are issued is becoming a significantly more fundamental opportunity, but requirement by the lenders.
Again, you know, not only being, you know, SaaS-based, technology-based offerings, but this countercyclicality that we have, you know, in default, you know, in foreclosures, in property taxes, and the technology that we're offering to make things done quicker and cheaper, certainly augments our position in the overall marketplace.
Yeah. Think about what Gary just mentioned, Christian, which is 140 million homeowner total addressable market. Then think about the taxes as your largest operating expense after debt service, and what you might be willing to pay for a service like that. A Real Property Tax Analytic that could put you on equal, if not superior footing to municipalities so consumers can identify where taxes are too high, too low, and by how much. It's a large TAM that Gary addresses. I think it bears to think about the size and opportunity in that marketplace.
Perfect. That's a helpful color. I'll touch on, maybe just for my second question here, the valuation segment, which we haven't focused on too much yet. There was a good tick up in Anow in the quarter, in Q4 there. Some of that's due to a white label arrangement with a customer there. Just wondering, as you guys look out to 2022, any traction on the Anow platform? And if there's been any change in your go-to-market, the types of customers you're signing on under Anow?
Jim, I'll let you handle that.
Certainly. Yeah. We've been very excited about the Anow platform. The launching of a marquee client, one of the largest wholesale lenders in the United States, was a fantastic milestone, and we've been working through a number of different customizations with them. I'll digress for a second. You know, with our land and expand that we talk about, that client, there's additional opportunity for us not only to provide other title tools, also the AOL. As we talked about land and expand, I like to use some of these as examples for you, as you're thinking about an investor.
Once you have an MSA in place, and again, this is the top wholesale lender in the United States, being able to then expand your other products and services goes to that organic growth that people like to see. It's just gonna be another example of that as we innovate and deliver the technologies. Now back to. That's where you hear me refer to an end-to-end encrypted, route optimized, AI-enabled data pipe. You know, what we put in with Anow hasn't changed. Like, our thesis has not changed. We're gonna continue to add both recurring revenue through additional appraisers signing on. We're going to continue to provide that data pipe and connect to various distribution sources.
You'll see in the next, you know, 90 days, additional announcement around partnerships that continue to proliferate with the Anow platform. Again, it's about that digitization and about the synthesis of all of the information that we now have at our fingertips. MLS, all of the property specifics. Some of the other things that you'll note is property condition, value, tax, title. All of it is the physical asset underwrite, and that data pipe that was developed through Anow will continue to be provided to financial institutions and other clients within the real estate lifecycle.
Christian, if I may add, if people wanna go back to an interview that was done in September of 2019 with StableView tech conference, there was an interview done. I'd like to point out during that interview, we laid out our strategy and our vision. If you look fast-forward to where we are today in 2022, and keeping in mind our vision and our strategy that we laid out that time, you'll find out that we carried it out to a T, and then some.
I think that, you know, we're at a time and a space in our company where that strategy and vision, while we're, you know, putting it in place right now, what we're going to focus on going forward is taking those elements that we have and, you know, capitalizing on these opportunities. You know, Jim's mentioned that, you know, that we have some challenging times ahead with interest rates increasing. It's going to impact on the amount of refinancing, the number of transactions that are taking place. Certainly, our clients, the lenders, are needing us to use technology to allow things to be done more affordably, and certainly quicker. That's who Voxtur is. That's exactly what we've done, exactly what we laid out three years ago when we initiated this whole strategy and vision.
That's exactly what we're doing today.
Got it. Thank you, Jim and Gary. Congrats on the quarter, and I'll pass the line.
Thank you.
Our next question is from Colin Fisher from Garrison Creek. Your line may be muted.
Hey, I'm here. Sorry about that. Good morning, everyone. Couple of quick questions. With regards to your guidance, so just to be explicit, RPTA expansion, AOL, and wealth are not included in that guidance. Is that correct?
By and large, that's correct. There's a small minimal amount that we have attributed on the AOL, but by and large, the increased capacity what Jim is carrying out both through tax and AOL and other matters have not been included. Essentially, the guidance was based on business that we believe to have in place and that we feel comfortable in carrying out the offerings that we had in 2021 and expanding on those, and that's what the guidance was based on.
Okay. You guided basically to a 51% gross margin, and, you know, you can get to 51% in a few different ways. My model sort of comes out that you have an exit Q4 of between 67% and 74%, based on your previous business, not including RPTA, AOL, and wealth. Would that be about right between 67% and 74% exit rates for 2022 based on your previous guidance?
I think, you know, I'm gonna turn to Angela for that in a second, but let's just say this, that all of these new offerings are technology-based. All of these new offerings are based on using technology rather than brawn. Our gross margins are gonna be incrementally substantial in relationship to some of the boots on the ground work that has been historically done. I won't tell you exactly what that margin is, but certainly our long-term view is to increase our margins. Ultimately, that would be north of 75%. We don't expect to reach that in 2022, but you never know.
Certainly, you know, what Voxtur is doing today, with all of these new technology offerings certainly augments and improves, you know, all of the service offerings there as far as the growth margin goes. Ange, you have anything to add to that?
No, Gary, I agree with everything that you've said, and I think as we continue to go through the year, you know, you'll start to see some of that in the back half of the year.
Thank you.
Basically AOL, RPTA, and wealth, what would you expect those offerings to have in terms of general gross margins?
Angela, you wanna comment on that? Like at this large.
Yeah. I mean, I think they're going to be, you know, obviously higher than some of the historical gross margins that we've reported. You know, I think as we get further into those, we'll be more comfortable providing more detailed guidance on, you know, with some specific numbers.
Just to elaborate, Colin, it's extremely important that people understand, you know, who Voxtur is, where we're going, and what we're doing. You know, the data that we have supplemented by unique and very pertinent and applicable technology is catapulting us to a point of being solely regarded as software as a service provider in every aspect, whether it's in the acceleration of sales to, you know, high double-digit increases year-over-year. The cost of acquiring a client is certainly affordable since we've got four service offerings right now that all blend into the same clients. And as a result, our gross margins are gonna be increasing, you know, in using that technology as opposed to having something to do manually. You're on the right page.
Exactly what that percentage is gonna be will always obviously be dependent upon, you know, how quick and accelerated the adoption is going to be by our lenders. When you offer something that is cheaper, when you offer something that is quicker, and you offer something that is more accurate, it seems to me that that should be an easy decision to be made.
With regards to AOL, is it going to be, like, is it live today, tomorrow, or is it three weeks from now, or is it a month from now? When do you [crosstalk] e xpect to start to issue the first AOL on your platform?
Jimmy?
Thank you, Gary. We've already issued the first AOLs. We did it in the fix and flip market, where the initial loan wasn't dependent on a Fannie or Freddie guideline. We've already seen the product work. We tested it in two different jurisdictions, and in both it was a substantial savings. In a normal mortgage transaction that was portfolioed for a top 10 lender, we provided it for another mortgage company that was providing financing to that fix and flip market, which remains strong throughout the United States. It's already been tested, it's already been proven, it's already been provided.
In the next, you know, couple of weeks, you know, we expect to have an announcement around the, you know, the execution with some other lenders. We're working very closely with a number that we're, like, at the finish line. I would expect, again, like, some point in this month that we'll be announcing around that. From there, it really is going to be a matter of testing with them, scaling, and doing data returns, that'll take, you know, 60, 90 days, and then you'll have the widespread adoption. You know, the interesting thing about it is that this is a platform.
You know, it is a platform that we can provide to other attorneys, to other title companies, to title underwriters, to other third parties. It's a platform that'll provide using our data, using our unique algorithm to support the product. The ingestion engine that we've created, it's really an end-to-end encrypted database that allows people to go in and be uber efficient, reduce the risk to the lender and to the consumer, and provide a more cost-effective and better customer service experience. It's really unique in that way, and that's why we're, you know, we're very excited about it. Once we get through this, I'll call it the initial, you know, testing phase, onboarding and sign-up phase, and make that announcement, then it'll be about.
We've already signed other parties to distribute. It'll be about signing distribution contracts and unit counts. I would imagine that end of Q3, Q4 will be you know one of those lines where we provide some additional guidance around unit and client counts.
I'll just follow up with this. RPTA and Wealth, what do you expect? What sort of anticipation do you have in terms of adoption, and when do you expect those to start to go live in terms of the expansion of RPTA and the launch of Wealth?
If you look at the tax piece and you think about the adoption, you know, the great thing about Voxtur that may not be readily apparent to everyone is that, you know, we have these master services agreements with lenders. Lenders, you know, about 60%-70% of their portfolio, you know, they are the escrow agent to handle those taxes, right? So as they do it, as they service these loans, they actually receive the updated tax bill, and generally, they just take in that tax bill and pay the taxes. Okay? With RPTA is the analytics to make sure that the tax is accurate, you know?
The new standard I would imagine in this country, being that the data is now being revealed through RPTA, it would make sense that now to be a reasonable servicer, to act in a reasonable manner, a non-negligent manner, you'll need to run an analytics engine like RPTA on your portfolio. These are the same clients that we're already deploying either title to, our tax waterfall product to, our Anow data pipe to or some other service to. These MSAs can be quickly modified with additional statement of work around taxation. Again, I've told other consumers this.
Since Gary brought this from the province of Canada, since he connected ILA with Apex, expanding our reach to 2,023- 3,300 counties and giving us this additional wealth of data, we're now able to turn RPTA to provide to consumers those 140 million homeowners that we talked about and to lenders. I expect that over the next, you know, 90 days, as we're actually going through the testing on AOL and beginning to ramp that up, we're going to be simultaneously in a two-pronged attack with those same clients, demoing for them the RPTA product. Basically, I'm showing them as well as regulators that there's this product out there that can evaluate taxes and help consumers pay accurately.
No longer will it be enough in the escrow process, and that goes for escrow agents too, to just take a tax bill and pay it blindly, when you're looking at somewhere between 5%-10% of inaccuracy. I mean, I ran it on my own home, and the taxes were off by 20%. Now, that may not be the average. We don't think the average is a 20% delta. In a rapidly increasing or decreasing market, okay, which we could have both, we have inflationary effects today, and we have price appreciation that's pretty precipitous.
At some point in time when supply meets demand, and the rates further crowd out additional consumers and the prices cool, well, then at the same time now you're gonna have, you know, prices coming down. RPTA is gonna be essential in really mark-to-market people's biggest expense with the cost. Without doing that, not performing that analytics will make you negligent. It will be unacceptable. It will be a disservice to consumers. We expect that, you know, our clients are very responsible lenders. Obviously we work closely with regulatory agencies to help get the Selling and Servicing Guide changed, being very thoughtful about homeownership, being very thoughtful about the consumer and the investor, connecting Wall Street to Main Street.
I think that's what you should see. What you'll see is the recognition, as we roll out our RPTA, that it's not optional. It's going to be a required tool for lenders, and it's gonna be a great opportunity for consumers. I know I'm glad I have it in my jurisdiction to help me, and I'm sure that other consumers that I've spoken to across the country are gonna feel the same way.
Colin, I'm just gonna.
That's great.
Colin, I'm just gonna say, just to be clear, these algorithms that we built is based on 40-year history of assessment tribunals across North America, the decisions that they make, the parameters on which they make their decisions. It's an infusion of that decision-making process, incorporating the laws in each, you know, requisite jurisdiction, along with this, you know, substantive database that we have ingested, which we believe is second to none in North America right now. Combining, you know, subscription data along with MLS data, along with imputed algorithms based on, you know, assessment tribunals and jurisdictions, it really does set us apart from anything that's out there right now in the marketplace.
One last question. Thank you for that, by the way. One last question is, regarding the desktop review and the sketching requirements coming out, when do you expect that to have a material impact on the market as a whole? Which of your acquisitions and platform are gonna be best able to adapt to that or benefit from that?
Jim? Hello, Jim? Oh. Maybe I'll hop in. I think he lost you.
Sorry about that.
You bet.
No, I was on mute, Gary, trying not to interrupt anybody. On your question, you were asking, you know, which one of the platforms do they expect to change the market first? Is that the question?
No, I'm asking. The desktop review has been put in place and there's a sketching requirement element. I'm curious as to when that's actually gonna finally have real impact in the marketplace, and which part of the platform will best be able to adapt to this or benefit from it?
Sure. If you maybe you're paying attention to the Freddie Mac guideline that's going to change around desktop appraisal in July, I think it's July 22nd of this year. I think from that time, slightly before the 22nd of July, and then going beyond that into the quarter, and into the fourth quarter, the what we call the Nexus, right? It was what I was calling the Synthesis, but we call the product Nexus. It's the combination of the ingestion of the Apex sketch, the application of our PTA, the imagery that's created through our through our augmented reality app, the wrap of data around an automated valuation methodology and the insurance component.
All of those pieces feeding into this Nexus platform that is dedicated to provide hyper-accurate, hybrid appraisal support. We expect all of that to really proliferate after that Freddie Mac announcement. Already working closely with the GSEs on what they call data and done, which is the ability to provide all of these tools. I think when you look towards the end of summer, you're really gonna see these tools coming together and the culmination of all of the hard work that we've done over the past, well, now it's been a little over a year, putting the databases together, acquiring additional data sources through some of the acquisitions, and now seeing it become more meaningful in the marketplace.
Gary and I have talked about this with the acquisition of APEX. Gary talked about it with APEX when he did that acquisition in 2020, with the acquisition of Anow, with the combination of the Benutech data, with what we did to Xome. You could see that if you go underneath the covers in each one, and it's consistent to our thesis, but if you see underneath it, you'll see that it's this data asset at its core. Assimilating that data asset because we have thought leaders in valuation, in tax, obviously, and in settlement services, as well as mortgage servicing and investing, more broadly.
You could see that it's the culmination of that data and the combined intelligence of our group that allows it to proliferate and be successful. Look towards end of summer with some additional guideline change. Look for Fannie Mae and Freddie Mac to continue to follow the Biden administration mandate of additional affordability and how important and impactful what we're doing could be. This modernization and alternative to title could, you know, can save the average person CAD 1,000. The culmination of our Nexus platform, the synthesis of the data could be another CAD 700 savings in a transaction. This RPTA tax for consumer could reduce your taxes.
Well, for me, it was 20%, but on average, somewhere between 5%-10% of your tax bill, putting thousands of dollars back in people's pockets each year. Look to us to provide very accurate technology and tools built on this data within the regulatory framework. That's the beauty of it. That's why when you look at some other competitors, or you look at people that espouse that they're gonna change this, we're gonna change title, or we're gonna change this.
You know, having the understanding of the regulatory guideposts like Gary does, like I do, like our team does, being able to operate in that and then apply an end-to-end hash database, distributed ledger technology, being able to build blocks of data, so that you can do something once, and it's immutable. Understanding that we can deliver it in an elegant cloud-native environment and solution. You know, all of those things, you should see those theses being proved out. The AOL was the culmination of understanding the current regulatory framework, the legal framework, the nature of the delivery from a Six Sigma standpoint within our clients, the insurance framework, and being able to put all of that together in such a way that it could be efficient and effective .
It was really to show the world, but definitely North America, that Voxtur has the data to do it. Voxtur also has the technical chops to do it. Voxtur also has the technical expertise to do it, and Voxtur is willing to make it happen. We did all of those things, and now our shareholders get to see. Well, they've already seen some of the success, but they get to see the further success and the growth of the business. That's what RPTA is too. It's all those years of Gary doing international tax, building a multinational company, working on the most sophisticated tax challenges, of supporting the provinces of Canada and the communities throughout the United States with tax technology.
Really thinking, you know, if we can do this, and be the arbiter of the truth, be the company that has the most validated, accurate information, then why wouldn't we, like we did with AOL, let's also do it for consumers. Let's set a new standard. That standard will become a legal standard, and that will drive the necessity of this. It's not gonna be a luxury. That gives you a little bit of more insight into our mindset as a company.
[crosstalk] That's perfect.
Colin, if I may add, it's not a coincidence on what we've done. I'm a big believer that it's not a matter of taking somebody that has technology chops and knows how to code and knows how to, you know, adapt itself to the latest, software, applications, et cetera. You know, that obviously is important. But if you do not have somebody in our team that have spent a lifetime in the real estate business understanding what the clients' wants and needs are, not having to ask them, but understanding of what their wants and needs are, and being three steps ahead of the game so that we're in a position to deliver, when the necessity happens.
This necessity is happening right now because I think everybody knows that we're gonna have challenges ahead of us, meaning the world at large with respect to the number of transactions and the impact of interest rates, et c., etc . You know, what distinguishes us is that we have this innate ability to understand what our clients want, what they need. We've had the foresight and the innovative ability to be able to build something that addresses all of the needs for the consumers and for the lenders to make this successful for us. Regardless of what's going to happen in the future, we have separated ourselves.
You know, our goal is to deliver these appraisals within 72 hours and CAD 200 versus the CAD 1,000 and 20 days it's taking today. It's our goal to be able to deliver, you know, attorney opinion letters for under CAD 1,000, where it's costing anywhere from CAD 2,500-CAD 3,000 today. I mean, to roll out taxation, to roll out all of these innovative products, it is just not coincidence. It's been, you know, an overnight success that's been probably, you know, five years in the making.
Thank you for that. I agree, you guys have been doing a great job in terms of, shepherding the business and building it as you'd outlined. I'll leave it at that. I'll pass the phone if anybody else has any more questions. Thank you.
Our next question is from Ryan O'Flanagan from Cormark.
Hey, guys. Congrats on the Q4. My question is on the AOL platform as well. Just curious on the rollout, is this something that we should expect you guys manage with strategic partners nationally, or is this gonna be managed on a state-by-state basis?
Yeah.
You should expect a couple of things, Ryan. Like the beginning, what you'll see is a couple of key core jurisdictions that have slightly different title laws and slightly different closing models. For example, you might see a notary closing state like Florida, for example. Or you might see a state that has more attorney involvement, New York, New Jersey, Pennsylvania. You might see a state where an attorney does the doc reviews as well, like Texas. You might see a Western state like Colorado or California, where there's a combination of title is separate from escrow. As we roll it out, think about it like this, it's a national product, national platform.
It works in every state across the country. You know, the low lines and the testing will happen in a few key jurisdictions, probably in like Texas, Florida, Pennsylvania. Let's just take those three in our discussions. That could certainly change based on lender needs. A lender has, you know, a lot of work to be done in Colorado, then Colorado may move itself up the priority list. Essentially, you'll see it launched there. You'll see the initial testing phase done internally, Voxtur Settlement Services, providing settlement, us providing technology and lawyers coming into our platform to do the legal work. You'll initially do that.
That's so we can control what I call the U-Hold, the V-Hold, make sure that we have the best in delivery, and we maintain price integrity. That's just a small portion of it. You know, I am looking to scale quickly, you know, from that initial, what I think will be, you know, in the 90 days from now, could be as many as CAD 1,000 a month. You know, looking to expand to the CAD 10,000 a month very quickly and then the CAD 50,000 a month, you know, representing a small portion of the CAD 1.1 million-CAD 1.3 million transactions that occur on a monthly basis in the U.S.
You know, I'd like to achieve that, you know, certainly by 2023. You'll look, and you'll see it. Key jurisdictions come out first. We roll out internal QA testing, controls for service delivery, etc. We've already signed some distribution partners. We'll continue to do that over the next 90 days while we go through testing. Then you'll see it launch out based on lender footprint. You know, one lender may be really strong in the Northwest, in Washington, Oregon, etc. You know, they might be more focused there. Somebody else might be in the Southwest, so it's California, Arizona, Nevada.
It just depends on those lenders, but it's a platform that'll support that anywhere you are in the United States.
Great. Thanks. This kind of ties into it as well. I guess just you've had some original conversations with these lenders. Sounds as though there's an opportunity to announce a few partnerships in the sort of shorter term here. Just out of curiosity, how?
Correct.
How ready were these lenders for this change, and how would you sort of rate their ability to pivot and to add your platform? I guess, finally, are there any other sort of strategic opportunities that you guys have, either with partnerships or other little tuck-in acquisitions that might help shorten that sort of cycle of integrating them and make it an easier process for them if they're not prepared for it today?
Yeah. That's a great question. Here's why we're so excited about it. Remember, we provide the traditional title and the settlement services to lenders today through APIs or direct integrations. In so doing, we've proven we can do scale, we can close transactions at scale. From a Six Sigma standpoint, when we took a look at, you know, what do you wanna change, right? What do you wanna leave the same? The data ingestion and the accountability and auditability, we knew we wanted to improve that. Okay, we improved that through our technology, the end-to-end drifted environment. We wanted to improve the claims paid process, so we streamlined and then improved that.
We wanted to improve the nature of the human being that intersects with the technology. We did that. We wanted to change the pricing, and so we did that. The last component, however, that we didn't change was the process. From a lender standpoint, if they use a third-party provisioner to provide fees that populate into their LOS or their POS system, the Point of Sale or the Loan Operating Solution, we didn't change anything. We had the ability to leverage companies and technologies that provide support services to lenders effectively without changing anything in their world, because our fee structure is simpler. It's actually easier for a loan officer to disclose. It's easier and more understandable for the consumer. There are no additional fees.
There are no add-ons, you know, for different, you know, like different forms that would append to a title policy. In fact, if you have a lender, and the lender requires a product to assure the title, then what you can do is the homeowner is an additional insured. There is no additional fee for a homeowner. Whereas today you have two different fees, you have an additional fee for the homeowner and the lender. Like, we cleaned up and we automated where we needed to, we encrypted where we needed to, we improved the payment process where we needed to, we secured it, and then we deliver it in the same manner that the lenders are ingesting these services, and technology today. That's the beauty.
That's why, you know, when we look at it, we say, "Oh, I think I can get to 1,000 units in, you know, three to four months and maybe, you know, 10,000 units in six months or, you know, by the end of Q4, and then continue to scale up." It's because we have these integrations and because our distribution partners do. You'll see, in the nearer term, you know, it's four weeks or six weeks or so, announcement that we are in production with lending partners, you know, subject to their limitations, of course, on disclosure. We'll be able to talk in general terms. It's a, you know, top 10 lender by volume or a top 10 bank by assets, a Tier 1 bank by assets. You'll be able to hear that.
I would imagine some lenders will wanna get out in front because of the effect it has on disaffected homeowners, because it's so consumer friendly. I think some lenders will wanna announce that, and actually beat their chest that they're leading the pack on making home owner-ownership more affordable and doing things for their consumers. I'd expect some of that too. It's really the distribution partners signing them up and adding them already. We've already done that contracting for a couple that are in the wings now waiting. I expect that this is gonna grow pretty quickly. That's why it's tough when people say, "Well, will it be the AOL that's going to be the biggest part of Voxtur's success in the rest of the year?
Or will it be RPTA or will it be Voxtur Wealth?" You know, that's tough. All of them are relatively green fields with first mover advantage and IP protection. I mean, we have a process patent filed on our methodology to create this Voxtur AOL. We have IP protection on our data pipe, you know, the Anow technology. We have IP protection on RPTA. So that's unique. So, you know, RPTA has 140 million homeowners. So you know what, 10%, you know, did CAD 20. I mean, you know, the numbers get big quick. So depending on how quickly that proliferates, and does it go through the servicers to attach with RPTA at the same time they need to get more competitive, who.
You know, it's gonna be an interesting and fun expansion to watch. You know, is it AOL? Is it RPTA? Is it the RealWealth platform? Is it something else that we haven't disclosed yet that's interesting, you know, and that will have to reveal itself later? All of it's exciting to be part of, Voxtur.
That's really helpful. Thanks, guys.
That was our last question. Thank you, ladies and gentlemen, for participating in today's call. You may now disconnect.