DataQuick boosts AVM accuracy
DataQuick announced Wednesday substantial enhancements to its automated property valuation model (AVM), which is known as CMV-Portfolio.
The changes are designed to improve valuation accuracy and increase the chance that an automated property valuation will fall within 10% of the actual sales price.
"Our analytics team has boosted the accuracy in each of these models in order to provide the most precise property valuations possible," said John Walsh, president of DataQuick. "AVMs offer a cost effective valuation service through the life of a mortgage, going beyond the loan origination and underwriting process to provide valuation intelligence including monthly property value and mark to market value even after the loan is on the books."
"What sets CMV-Portfolio apart is its stable estimate based on multiple data methodologies and an interpretable confidence score which can be easily embedded into risk model," he said.
CMV-Portfolio is comprised of four unique submodels that use different methodologies and sources of data to estimate the value of a property. Estimates are combined using a weighted average determined by property-specific accuracy measures of each submodel.
More accurate submodels receive more weight when the values are combined. This approach provides more accurate and stable estimates than any of the individual submodel estimates alone by being less susceptible to extreme over- or under-valuations. It also significantly increases the number of properties that can be accurately valued and allows mortgage professionals to customize valuations based on what is most accurate for a specific market or property.