Benefits and Features of ValuePoint’s Automated Valuation Models
- Reduce Closing Costs
- Shorten the time needed to close loans
- Provides a confidence score to indicate accuracy
- Assist in quality control
Available AVMs
The VeroVALUE Suite
Veros has designed a family of AVMs that comprise the VeroVALUE AVM Suite.
These automated valuations are designed to weigh accuracy against hit rate,
allowing you to create the balance you need in a single AVM or in a cascade approach.
VeroVALUE Preferred
VeroVALUE Preferred balances valuation accuracy and hit rate with a more
stringent focus on accuracy. VeroVALUE Preferred takes VeroVALUE, the premier
national valuation tool one step further, boosting its proprietary optimization
techniques, tight valuation controls, and data-rich intelligence about local
market activity, with strict standards on market activity, neighborhood analysis,
and usable hit rates.
When accuracy is the priority over hit rates, VeroVALUE Preferred is unmatched.
As a result, it is commonly used in the first position in a multiple-AVM cascade.
VeroVALUE Preferred reports include:
- Value estimate
- Value range
- Confidence score
- Available subject property information
- Market data information
- Historic price trends for the subject property's neighborhood
Freddie Mac HVE AVM
Home Value Explorer® (HVE®) is a Freddie Mac Automated Valuation Model (AVM)
tool that generates an estimate of property value in seconds. HVE encompasses
several models rolled into a single product, for one low cost. HVE uses
Freddie Mac's unique proprietary algorithm that blends model estimates returned
by our repeat sales model and hedonic model, which is considered our combining
process. HVE provides extensive coverage of all 50 states and more than 3100
counties with its database of approximately 100 million property records.
HVE data simplifies the mortgage process by streamlining the collateral valuation cycle.
For more than 20 years, Freddie Mac has effectively employed AVMs internally for
its own risk and portfolio management. AVMs have become an integral part of
today's mortgage market, and AVM technology has advanced the world of automated
valuation services from novelty to necessity.
Today, AVMs are efficient, effective and essential tools in loan manufacturing.
AVMs help expedite processes, lower costs and minimize risk. When choosing an AVM,
it's important to consider coverage, vendor reputation, current technology,
accuracy, and price. Freddie Mac's dedicated team of modeling experts continues to
improve and enhance the HVE tool to keep it best of class for both our internal use
as well as for our customers' use.
In nationwide tests conducted by large wholesale lenders, HVE consistently performs
at the top in the areas of coverage, accuracy, and reliability.
HVE is a tool with many uses:
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Supports many lending functions such as:
- Underwriting review for first and second mortgages, and
home equity loans/home equity lines of credit
- Credit risk management
- Loss mitigation
- Refinance and modification of mortgages
- Supports processes related to evaluating insurance needs
- Supports Quality Control (QC) processes
- Supports Portfolio Management processes
Collateral Analytics - CA Value AVM
With more than 10 years of property data and transaction information for much
of the U.S., the CA Value AVM generates instantaneous online reports in
real-time for virtually any residential address. These reports include a
value estimate, comparable sales and listing data, location map, confidence
score of the value estimate, as well as additional charts and detail on the
surrounding market’s price and sales activity trends.
The CA Value AVM employs a multitude of approaches to value each property
including a number of Hedonic or Multiple Regression models, Appraisal Emulation,
Time Adjustment, and other proprietary techniques to calculate a final value.
The multiple model approach combined with neighborhood specific comparable
selection guarantees the most up-to-date and precise valuations. In addition to
traditional public record data, the CA Value AVM incorporates listing, off-market
and sales information for increased geographical coverage and accuracy.
CA Value Features
- Detailed subject property characteristics
- Look up subject property by owner name or parcel number
- Estimated market value, high value, low value and confidence score
- Historical subject property transaction history (sold, active, withdrawn, expired, pending, etc.)
- Interactive map (road, aerial, bird’s eye view) with display of subject property and comparable properties
- Entry box for comments to include with PDF
- Report download to PDF or Excel
- Price charts – Surrounding zip code home price trends
- Sales activity charts – Surrounding zip code subject property versus comparable sales distributions