Collateral Analytics developed a new tool to assist appraisers in assessing the value of a home. The tool defines the property condition for homes across the U.S., using a rating system to better select sales comparables when appraising or automatically valuing homes as well as helping estimate the Return of Investment when renovating a property.
The new tool is based on historical and current property condition ratings for approximately 10 million single-family homes around the U.S. The design team mapped available qualitative information on the condition of a home to Fannie Mae’s standardized C1 to C6 property condition ratings for appraisals.
“This rating system will be a key component in the next generation of our CA Value AVM by enabling it to use comparable properties which are indicated to be of the nearest condition to the property being valued,” said Michael Sklarz, president and CEO of Collateral Analytics.
“In addition, our new iBPO and iAppraisal products are already making use of these market-based factors for property condition adjustments,” he said.
This new tool comes at the same time of Fannie Mae’s new Collateral Underwriter is gaining a lot of industry talk. The proprietary appraisal analysis application was made available to lenders who sell loans to Fannie to analyze loans prior to closing to ensure that the loans conform to Fannie’s standards.