A longstanding problem facing investors and lenders is the lack of clarity around whether a property valuation can be trusted. Clear Capital’s valuation review management platform, ClearCollateral, helps investors and lenders reduce valuation risk, create operational efficiency and build a reliable audit trail documenting the key decisions that were made to approve a property valuation report. ClearCollateral is designed to help stakeholders trust a property value conclusion and shows every step that was taken to validate that value.
ClearCollateral addresses another key problem for those trying to manage their teams working through thousands of reports in an efficient manner. It’s configurable workflow tools allow for complete pipeline management, ensuring that valuation reports needing review are sent to the most appropriate and available team member.
Valuation review and workflow tools are fueled by Clear Capital’s combination of a national property database and real-time property analytics. Clear Capital has been developing, nurturing and maturing this approach for over a decade.
The hallmark of its insight into properties is the employment of information from a diversity of sources, including real-time MLS analytics, public records and proprietary datasets.
“By analyzing information from multiple sources, we are able to develop a broader understanding of properties at a national level,” said Scott Griset, director of platform products at Clear Capital.
Clear Capital has been developing, nurturing and maturing its national property dataset for over a decade. The hallmark of its data collection is the employment of a diversity of data sources, including real-time MLS, public records and historical valuation reports.
A property lending or investment decision requires a host of documentation to ensure a compliant and low-risk transaction. When this documentation is dispersed across systems, it increases compliance risk and is a real point of friction for the people trying to gather and report on the details of a case.
ClearCollateral’s Document Center provides a central repository to store and access all pertinent documents, and it’s always accessible for cases in progress or for historical cases in a stakeholder’s portfolio.
Some of the insights that ClearCollateral delivers include:
- Appraisal valuation accuracy
- The Valuation Accuracy score provides the most probable range of values for the subject property, based on similar and nearby comparable properties, and then provides an analysis of how distant the subject value is compared to the range.
- Appraisal report quality
- The quality score report summarizes an automated analysis of property risk, comparable selection, data accuracy, subject conformity, appraiser analysis and methodology, market risk and compliance. The score provides a simple and quick view into potential issues that need to be corrected or explained within a valuation report.
- Property market trends
- Interactive real estate market tools are designed to speed up the human analysis of the best comparable properties available for a subject property and how those comparables match up in terms of key property characteristics and market value trends.
The ClearCollateral Platform brings together several Clear Capital products that have been helping the valuation industry for over a decade, including ClearQC, Home Data Index (HDI) and Real-Time Comparative Market Analysis (RTCMA). These products are available for every appraisal imported into the platform
ClearQC provides a fully tailorable rule set that is designed to identify potential valuation and quality risk. The Home Data Index service, delivers current data on the housing market, including REO and short sales activity and price tier segmentation for a complete market condition analysis.
The Real-Time Comparative Market Analysis service, provides a comparative listing activity report around a property that gives accurate, detailed insight to a local market.
“Quickly determining the value of a property and proving why that value is trusted is a huge step in mitigating the risk lenders face in terms of the health of their business and meeting regulatory requirements,” Griset said.