Provides Comprehensive Review of Appraisals to Obtain a Complete View of Appraisal Risk
A robust, automated appraisal review process can make the difference between poor quality appraisals and those with a high degree of integrity, increased valuation certainty, and reduced risk of loan repurchases. LoanSafe Appraisal Manager™ from CoreLogic® provides a single solution, enabling lenders, investors and Appraisal Management Companies (AMCs) to validate appraisals and obtain a complete view of appraisal risk quickly and easily.
LoanSafe Appraisal Manager provides an overall risk score using an analytic model that identifies appraisals with the highest risk of repurchase by rank ordering the risk of over-valuation, early payment default, foreclosure and appraisal non-compliance. The analytic model evaluates relevant predictive risk factors, including:
- Appraisal Integrity – analyzes the appraisal for completeness, compliance, consistency, and comparables selection
- Valuation Risk – considers the likelihood of over- and under-valuation, as well as the subject property conformity to the surrounding neighborhood
- Loss Risk – examines the risk of default and foreclosure due to volatile neighborhood factors or misrepresentation risk
This risk score enables lenders, investors and AMCs to objectively prioritize the riskiest appraisals and allocate their review resources to those appraisals. The ability to accurately and instantly identify the riskiest appraisals that require review saves both time and money. Moreover, organizations can tailor the risk score threshold to match their review resource capacity.
A Combination of Powerful Analytic Scoring and Actionable Data Provides Superior Performance
There are several ways that lenders, investors, and AMCs assess appraisal integrity. A typical appraisal review is accomplished by running the appraisal against a large set of rules that check for data completeness and validity as well as for compliance with appraisal standards and guidelines. Organizations verify data, review appraisal quality, determine valuation consistency, and evaluate market risk. This is a time consuming and costly process.
With LoanSafe Appraisal Manager, in addition to receiving an effective score that rank orders risk, clients also have all of the data they need at their fingertips to quickly and effectively assess whether appraisals are complete, correct, compliant, present lending risk, or contain potential fraud. Data validation is completed automatically, and the LoanSafe Appraisal Manager report provides a detailed, side-by-side comparison of appraisal data, public record information and data from the Multiple Listing Service (MLS) (where available).
CoreLogic is the largest provider in the U.S. of real estate, property ownership, fraud, mortgage and mortgage securities data—and the advanced analytics that use them—for the assessment of real estate sales, collateral valuation, home price trends, mortgage originations, mortgage- and asset-based securities pricing, foreclosures, delinquencies and asset dispositions. We collect and manage real estate related data and imagery from more than 10,000 government and proprietary data sources.
The market-specific data from CoreLogic covers:
- 99 percent of U.S. residential properties
- Over 700 million historical transaction records and data spanning over 40 years
- Over 90 million mortgage applications