Fidelity Sub Offers Warranty on Property Valuations
ServiceLink, a closing management specialist and subsidiary of Fidelity National Title Group, said Monday that it will offer warranted collateral valuations and automated valuation model (AVM) reports in an effort to ensure lender confidence in the property valuations it offers. By warranting the property values it provides, the company is attempting to reduce the buy-back risk between originators and investors due to inaccurate valuations, insulating the lender from a financial loss resulting from default, foreclosure or rejection by the secondary market. "The mortgage industry needs a higher level of confidence that valuations are accurate and reliable," said Kevin Gugenheim, executive vice president and chief strategic officer of ServiceLink. "With this added protection to the lender, transferee or assignee against an actual financial loss, ServiceLink's offering of the warranted collateral valuations and AVM reports are intended to not only offer greater protection, but to boost investor confidence levels and secure loan approvals more quickly." It isn't clear if the warranty is backed solely by ServiceLink, or if the warranty extends to the resources of its corporate parent -- which is one of the largest title insurance providers in the country. The company did not comment further on the nature of its warranty offering, and whether it intends to assume all buyback risk for improper valuations. For more information, visit http://www.servicelinkfnf.com.