Accurate Group released a new whitepaper with guidance to help lenders of all sizes determine how to implement automated valuation model (AVM) workflows into their lending processes, the company announced in a release.
In this paper, Accurate Group introduces and discusses “The Four Pillars of AVM Compliance,” a framework of best practices to ensure lenders are implementing AVMs effectively and efficiently that includes AVM validation and cascade modeling, assessing property condition, creating the evaluation and internal policy and procedures.
“The decision earlier this year to increase the de minimis appraisal threshold for residential real estate transactions from $250,000 to $400,000 means many lenders are re-tooling their systems and processes to account for the new ceiling,” Michael Kirk, senior vice president of Strategic Valuation Initiatives at Accurate Group, said in the release.
“There is also a much better understanding of the regulations and requirements for valuations, and with the technology advancements making these solutions readily available, the time for AVMs is now,” Kirk added.
Accurate Group delivers the industry-leading ValueNet product suite, which enables lenders to build an extensive portfolio of digitized appraisal offerings, including exterior and interior desktop appraisals for home equity and portfolio loans, bulk valuations on real estate portfolio holdings, and appraisals for conventional purchase and refinance originations. ValueNet is integrated with Accurate Group’s mobile property inspection app, GroundWorks, to crowdsource local property inspectors and enable on-site completion of inspection reports, the release said.
“When using a valuation solution that starts with an AVM and a property condition report , lenders can dramatically reduce the time it takes to complete the valuation to just 2-3 days, and save hundreds vs. the cost of a traditional appraisal,” said report co-author Nick Hideg, vice president of Strategic Valuation Development at Accurate Group. “Today, automation is imperative for lenders looking to maintain or create competitive advantage.”
Accurate Group provides valuation solutions to 22 of the top 25 U.S. banks, credit unions and mortgage lenders of all types. Through relationships with more than 10,000 appraisers nationwide, the company manages more than 25,000 appraisals each month. Since 2010, Accurate Group has managed all types of appraisals on more than $450 billion in property value and has closed or recorded more than $400 billion in loan volume for its clients.