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Lender Focus: Automated Valuation Models Mitigate Risks and Uncover Opportunities

As a lender, your most valuable resources are your frontline service and underwriting staff.

Whether your staff works with the public or the broker community, their success ultimately translates into your organization’s success.

Providing the right tools and resources to your staff enables them to identify more opportunities and close more (and better) deals.

Let’s talk about property valuation. The value of the assets, that will be pledged as security on your loans, sits at the center of everything. Assessing value and validating key property information is a crucial component of the mortgage process where you can offer support to your staff.

AVM Technology – Mitigating Risks and Maintaining Accuracy

Most larger financial institutions use some form of AVM technology in their underwriting process to help the underwriters validate property value.

Though, have you evaluated the solution you are using to see if your team is receiving the most timely, complete, and accurate information?

If not, here’s a checklist you can refer to, to see if your tools and reports are delivering the best value:

I. Data source

Where does your AVM data come from? There are multiple property data sources available. Data is usually provided by municipalities, government, local MLS boards, real estate associations, and private enterprises.

However, some of these data sources are more accurate than others. You should look for tools that obtain data from the land registry where property transfers, mortgages, and liens are registered as they happen. This ensures that the data is accurate and up to date.

For instance, in Ontario, the Province of Ontario Land Registration Information System (POLARIS) offers the most complete and accurate data as it relates to the properties in the province. POLARIS includes ALL sales data including that of private sales – this is the source that powers the Purview AVM.

II. Accessibility

Accessibility is crucial. Particularly in times like these when COVID-19 has impacted real estate activity and physical distancing rules are in place. COVID-19 has shown us that we won’t always be able to send an appraiser into a customer’s home and that it is critical that evaluation data is available online.

III. What other information can you derive beyond property value?

While we know that most tools are designed to provide you property values, some go beyond that. They offer supplementary information such as details about registered mortgages and homeownership – this information can impact closing.

Some even provide you access to fraud check reports.

Purview Goes the Extra Mile

The Purview Report consolidates all the features mentioned above in a single place!

We are committed to enabling financial institutions, lenders, brokers, and mortgage insurers to make informed decisions based on the most up to date property data.

The Purview Report provides:

  • Value – It flags opportunities where there is more equity and room to upsell. It also flags issues, so that you can address them before involving the insurer.
  • Homeownership information – The report can inform you if there are any undisclosed homeowners on the title.
  • Registered mortgages – It reveals registered mortgages as well as the registered amount. This can help you ascertain if the mortgage balance is over or underrepresented. The report can also uncover undisclosed mortgages.
  • Fraud check – It can do a real-time fraud check on the subject property by running up to 18 configurable queries to check for indicators of suspicious activity. The report also provides you a summary for each applied fraud parameter.

Equipped with this information, your team can make better decisions and make the most of every application that passes their desks.

Learn more about how you can support your staff in mitigating risk and identifying fraud today by calling 1-855-787-8439 or visiting www.purview.ca.

How do you help your staff in identifying opportunities? Let us know on social media. Purview is on FacebookTwitter, and LinkedIn.

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