Analytics provider CoreLogic announced a new data-enhanced, appraiser-certified evaluation tool.
The new product assists both mortgage lenders and servicers to address the new requirements issued in the 2010 Interagency Appraisal and Evaluation Guidelines (IAG).
CoreLogic's new product called Residential Evaluation Report provides an alternative for federally-related mortgage deals. This is for cases where the IAG allows the use of something less than a full appraisal, although requires more than a broker price opinion (BPO) or automated valuation model (AVM).
The new offering offers six perspectives to arrive at the property’s projected market value including a certified evaluation of property value with an appraiser’s opinion of value, a summary BPO, two AVMs and two Indicated Value Approaches (IVAs).
The new products assists servicers meet criteria set forth by the IAG, which were issued by the five federal financial regulatory agencies: the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., the Office of Thrift Supervision, and the National Credit Union Administration.
The product also meets the Uniform Standards of Professional Appraisal Practice (USPAP) as a Restricted-Use Appraisal.
The IAG sets the standards for property valuation, differentiates and clarifies the appropriate use of individual assessment methods to determine the estimated property value. It alsofurther defines “Evaluations” as an approved alternative.
Appraisals, which are time consuming and costly, are not always needed. Additionally, BPOs and AVMs, without additional data, do not meet the new guideline requirements for certain federally-related deals. The new CoreLogic product saves lenders time and money by leveraging the vast proprietary data from CoreLogic to enhance and clarify its results.
The new offering incorporates current property-level data to offer the most accurate and timely valuation available. Data contained in the tool includes:
- A complete BPO, with site visit by a broker/agent, property summary and photo of subject and comparable property characteristics
- Two AVMs, which offer a market value estimate from CoreLogic AVMs such as PASS®, ValuePoint®4, PowerBase®6 and HPA
- Two IVAs based on proprietary CoreLogic data looking at over 97% of all property U.S. deals. The IVAs utilize as many as 90 search criteria to analyze the subject property against appropriate comparables and offer reasonable and tested value adjustments
- An independent appraiser’s opinion of value with a desktop review and reconciliation comments by a certified residential appraiser