IAS Launches AVM-BPO Valuation
Denver-If in the past decade the industry has multiplied efforts to automate mortgage valuations, the crisis has enhanced the need for technology that makes it easy to include lender expertise.
Default management and residential collateral valuation services provider Integrated Asset Services LLC has introduced "Conditioned Valuation Model" a cost-effective tool that allows the integration of automated property analytics with human observation.
It can be used as an Automated Valuation Model and Brokers Price Opinion. At half the price of a standard BPO, the company said, it is an affordable tool for "business applications requiring more than an AVM but less than a BPO."
"Conditioned Valuation Model" delivers a real-time, 360-degree view of the condition of the property, the neighborhood, a condition-adjusted value, and market price trends.
"Traditionally, the industry has had the choice of a more expensive human-based solution or faster and riskier automated solutions. But the current mortgage industry requires these two valuation approaches interact intelligently and at the right price point," said Dave McCarthy, CEO of Integrated Asset Services.
"We've combined revolutionary valuation technology with objective third party property inspection services."
The executive said "Conditioned Valuation Model" was designed to help avoid AVM's failure to disclose supporting data and valuation methodologies that result in questionable property valuations.
At "a reasonable price" the company said, its "Integrated Valuation Solutions" suite uses a valuation formula that integrates property data from IntelliReal, the company's technology partner, to provide real estate intelligence, analysis, current neighborhood sales data, and active listings.
The data is then combined with a hands-on inspection performed by a third-party property inspection firm, including photos on the subject and its neighborhood condition, occupancy status, and conditions that impact value.
As a rule, mortgage experts agree, analytics resulting from direct inspections and automated estimates ensures higher valuation accuracy.
"The market has suffered by blind reliance on traditional AVMs. Today's market requires transparency and innovation in the approach to valuations, including the integration of human observation," said Ric Miles, CEO of IntelliReal.
"Conditioned Valuation Model" is one in a series of tools IAS introduced recently to assist the mortgage community mitigate losses, reduce risk and lower costs - such as the CDA Credit Due Diligence Analytics.
IAS is specialized in default mortgage services including valuation, reconciliation and full cycle REO disposition.