CoreLogic Launches LoanSafe Appraisal Manager™ to Simplify Appraisal Risk Management
Email Dan Smith
October 06, 2011, Santa Ana, Calif. –
—Single solution integrates multiple industry-leading capabilities to help lenders quickly identify property appraisals at the highest risk of repurchase—
CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today announced LoanSafe Appraisal Manager™ is now available to lenders, investors and appraisal management companies (AMCs) that require a more complete and accurate view of appraisal risk. LoanSafe Appraisal Manager is a comprehensive easy to use solution that integrates robust data sets from resources such as the Multiple Listing Service (MLS) with exclusive national listings from Partner InfoNet, and Automated Valuation Models (AVMs) along with an array of capabilities including an advanced analytic model, configurable tools, a compliance rules engine, and an overall risk score. The LoanSafe Appraisal Manager risk score enables reviewers to quickly and accurately prioritize appraisals at the highest risk of repurchase and allocate review resources more effectively.
“Property appraisals have become increasingly complex, costly and time consuming as new data and compliance guidelines have been put in place,” stated Craig Focardi, senior research director at The TowerGroup. “An appraisal review tool that automates the process, helps meet compliance standards and regulatory requirements, and delivers valuation-related information beyond the basics is essential in a market where home values are volatile.”
“Ensuring appraisal accuracy is a major priority for lenders, investors and AMCs,” stated Susan Allen, vice president, Collateral Solutions at CoreLogic. “Because accurate appraisals are a key component of mortgage origination and loss mitigation decisions, CoreLogic developed LoanSafe Appraisal Manager to easily identify appraisals that may have issues such as overvaluation, having been influenced by misrepresentation or fraud or suffer from non-compliance with applicable appraisal guidelines or standards.”
LoanSafe Appraisal Manager was developed using patented and patent-pending technology that enables the delivery of accurate and reliable valuations. Recent CoreLogic testing revealed that appraisals that scored in the highest risk category by LoanSafe Appraisal Manager were five times more likely to require a significant value reduction than those appraisals with the lowest risk scores. Additionally, loans with the highest loss-risk score were 15 times more likely to experience an early default. LoanSafe Appraisal Manager further refines valuation risk by leveraging CoreLogic AVMs in use by 17 of the nation’s largest 20 lenders.
The LoanSafe Appraisal Manager analytic model evaluates relevant risk factors, including:
- Appraisal integrity – analyzes the appraisal for completeness, consistency, comparable selection and compliance with FIRREA, USPAP, FHA, VA, GSE restrictions and Uniform Appraisal Data standards.
- Valuation risk – considers the likelihood of over and undervaluation by comparing a property to values established in the surrounding neighborhood.
- Loss risk – examines the risk of default and foreclosure due to misrepresentation risk, including potential fraud, as well as by considering local market default and foreclosure data.
LoanSafe Appraisal Manager automatically validates data and provides an easy to read, detailed report that gives side by side comparisons of appraisal data, public record information and data from the MLS (where available). LoanSafe Appraisal Manager is easy to configure, enabling organizations to tailor the solution to meet their specific business objectives and is accessible through CoreLogic platforms that are already integrated within the majority of mortgage lenders.
For more detailed information about features and benefits, please visit the LoanSafe Appraisal Manager product information page at http://www.corelogic.com/products/loansafe-appraisal-manager.aspx.
CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. The company, headquartered in Santa Ana, Calif., has more than 6,500 employees globally with 2010 revenues of $1.6 billion. For more information visit www.corelogic.com.
CoreLogic and the stylized CoreLogic logo, are registered trademarks owned by CoreLogic, Inc. and/or its subsidiaries. No trademark of CoreLogic shall be used without the express written consent of CoreLogic.