One of the first steps in determining a property’s value is the use of an Automated Valuation Model (AVM). Using an AVM helps lenders quickly and accurately get an independent assessment of collateral value, which can streamline the home buying process for them and the borrower. With that said, not every AVM is created equal. When deciding on the right solution, it’s important to look for a model that will meet your specific needs.
Total Home Valuex (THVx) from CoreLogic is a state-of-the-art AVM built to simplify and standardize valuation through the loan lifecycle. Leveraging CoreLogic’s vast property datasets, MLS data and other unique data assets, THVx uses a single model methodology to provide an optimal combination of accuracy and coverage. In addition, innovative technology supports different valuation use cases throughout the lifecycle, with customized pricing structures and delivery options.
“We continue to see the benefits of using advanced AI and machine learning techniques when developing new mortgage lending solutions,” said Ann Regan, Executive, Product Management at CoreLogic. “Not only does this allow us to provide an AVM model that can support diverse valuation use cases from marketing through portfolio monitoring, but it also reduces the potential for fraud and valuation subjectivity.”
THVx implements numerous innovative modeling, data and computing technologies, including a machine learning algorithm, network graph technology, cloud-based analytic infrastructure and a comprehensive data strategy. The performance, delivery and pricing of each THV solution are customized to unique needs of each lending use case.
“The benefits of leveraging a state-of-the-art AVM as part of your lending process are more numerous than ever,” Regan continued. “This is particularly true today where the GSEs are waiving the requirement for a full interior inspection in some instances and allowing some purchases under $400,000 to be completed without a full appraisal.”
The use of AVMs for lending purposes is highly regulated and CoreLogic works closely with their large customer base to support the strenuous testing, documentation, auditing and vendor management requirements that underpin this use of AVMs.
In addition to the regulatory requirements, the Total Home Valuex AVM delivers accuracy and geographic coverage that ensure buyers, sellers and owners benefit from a fair and consistent collateral valuation.
“Because Total Home Valuex uses the same valuation methodology from acquisition to underwriting, there are fewer valuation ‘surprises’ that can lead to fallout and consumer disappointment,” Regan said. “Not only will this increase a lender’s efficiency, but it can also improve client retention. Lenders get a more accurate, better-quality AVM that they can leverage across the loan lifecycle and borrowers get a better experience knowing the value they see is representative of the home’s actual value. Everyone wins.”
Ann Regan, Product Management Executive
Ann Regan is responsible for general management and product strategy for the CoreLogic portfolio of property, loan and market analytic solutions. She is an experienced product and business manager with over 25 years of experience developing, delivering and managing predictive analytic/big data solutions for financial services companies.