New Products Available to Support the use of Automated Valuation Models
In December 2010, the OCC, FRB, FDIC, OTS and NCUA issued their revision to the Interagency Appraisal and Evaluation Guidelines. Amongst other required changes regarding appraisal reports, the new guidelines state the following regarding the use of Automated Valuation Models:
"An Institution may not rely solely on the results of an AVM to develop an evaluation unless the resulting evaluation is consistent with safe and sound banking practices. For example, to be consistent with standards for an evaluation, the results of an AVM would need to address a property's actual physical condition, and therefore, could not be based on an unsupported assumption, such as a property is in "average" condition."
To Support our Clients with compliance, SIR has developed a host of cost effective solutions. Our solutions can be easily adopted into the work flow of a lenders processing and underwriting functions.
SIR Best Practices Solutions Include:
1. Photo and Condition Report
Order "PCR" Reports directly from the Sharper Lending Platform alongside the Automated Valuation Model. This report is prepared by licensed real estate professionals and is designed to evaluate property condition. Data is provided with respect to a property's condition in relation to the overall neighborhood market and influences. The report provides exterior photos including address verification and map location.
2. Value Sure Condition Adjusted Report
Order "VSCA" Reports directly from the Sharper Lending Platform. With VSCA, no separate AVM's are necessary. This report pulls a preliminary test of Value Sure AVM data to ensure coverage and then automatically orders a property inspection. All inspections are completed by licensed real estate professionals and includes data on condition, neighborhood influences and address verification. The overall condition of the property is then factored into the AVM logic and final valuation and inspection report delivered.
3. Desktop Valuation Inspection Report
Order "DVI" Reports directly from the Sharper Lending Platform. Desktop Valuation Inspection Reports combine the efficiency of automated MLS and Public Record Data to gather comparable sales data along with the expertise of a licensed appraiser to analyze and determine valuation. This report provides valuation data couplied with a property inspection to confirm condition and neighborhood influences. All inspecitons are completed by licensed real estate professionals.
4. Drive-by Appraisal Order Through Appraisal Firewall
Through the guidance of SIR Appraisal Director a panel of appraisers will be developed to accept drive by appraisal requests. Orders can they be placed through the platform and our technology ensures proper rotation and compliance with independence between parties.
