CoreLogic (CLGX) has developed an improved cascade service that allows lenders to customize evaluation standards they apply to automated valuation modules. A cascade is a set of underlying rules that apply to an AVM. Cascades check for technicalities such as accuracy or data sufficiency, and can also determine which AVM model is best for which situation. There are many different cascades or settings that pertain to AVMs to match the different types of assets in the market. For example, a cascade for distressed properties would be geared toward compliance with servicing regulation and tuned to REO sales, while a less specific niche cascade may pull AVMs from other data providers. "We have two different levels of cascades," said Susan Allen, vice president of collateral solutions at CoreLogic. "We have primary development in which we give more guidance. Banks can select from a list the options they want for a cascade. Or we can start with a blank piece of paper." With CoreLogic's new cascade, lenders can set their own parameters for models, accuracy (percent error), coverage (which counties they want to cover), data sufficiency (number of observations), and consideration of interagency guidelines (MSA vs. county vs. federal). The custom AVM cascades also give clients the option of selecting from the company’s patented AVMs or blending other premium AVM models. CoreLogic is a data analytics firm that provides consumer, financial and property information. The firm recently launched a fraud prevention program called LoanSafe Fraud Manager. Write to Christine Ricciardi. Disclosure: The author holds no relevant investments.