Evaluating Your Portfolio in an Uncertain Market – An eBook for Lenders of All Sizes
Maintaining Business Resilience and Agility During Uncertain Times
We have seen from the COVID-19 pandemic just how quickly society can change in the wake of a crisis.
While we are a few months past the onset of COVID-19, the crisis fallout is still continuing. As part of preparing for the post-pandemic world, it is increasingly important to have a plan to scale quickly — both for your clients and your business.
In times of an ongoing crisis, there is not necessarily a right answer for how to do business. Each day and each week can look different — and be difficult to predict. Instead, you must be ready to act at a moment’s notice without burning through your available resources.
The answer? Access to data and solutions that can scale with your team and respond to changing business needs.
Data is increasingly critical for maintaining agility and efficiency through the COVID-19 pandemic and recovery phases. Digital solutions can help perform valuations, verify property and ownership details, and find information that was historically difficult to come by online.
We will look at how this can be adopted within your team.
Data can mitigate lending risk by informing due diligence efforts. For instance, a property title search can verify key legal information and also reveal registration on the title, including active mortgages, liens, easements, and notices.
This can inform you of a potential income or credit problem and alert you to dig deeper.
Detecting Potential Fraud
Fraud risk is even more important to monitor during a crisis. While malicious and willful fraud certainly exists (and could be higher during COVID-19), there may also be fraud that your client does not realize is fraud — such as an omission or leaving off an owner on the title because they are not aware that matters.
In any case, you need to watch carefully for signs of fraud and pause the process to dig deeper if something is found. Fraud Check is an effective tool for lenders and insurers to manage this.
Monitoring Title Charges and Encumbrances
As your business may need to scale quickly, your clients’ financial situations could change just as fast. If the public health crisis continues to affect the labour market and economic recovery, clients may be facing ongoing decreased income and increased financial strain.
One way to stay in-the-know about your clients’ situations is to monitor changes to their charges on the title. For instance, if a second charge is added, it could indicate they are facing issues with income or debt. You can also track whether an encumbrance, such as a lien, has been added.
The PIN Monitoring solution from Purview allows you to track all of this and more for properties you have an interest in.
Estimating Value and Equity Remotely
These tools can aid your process and point to flags to investigate further. An AVM (Automated Valuation Model) can estimate the property value based on a complex mathematical equation made without bias. It can also be used to estimate the available equity. The key to using an AVM in your process is making sure that the data your AVM derives the value from is accurate, complete, and up-to-date.
Monthly Market Insights Reports
Teranet releases Monthly Market Insights Reports that present a snapshot view of the Canadian mortgage and housing market with data derived from LendView.
By staying on top of these reports (and others like the Teranet-National Bank House Price Index™), you can have a better picture of what is happening in the wider marketplace and make adjustments accordingly. This could even point you to opportunities for growth that you were not previously aware of.
Read the latest report: Teranet Monthly Market Insights Report August 2020
While an economic crisis undeniably makes conducting business uncertain, to truly be effective during this time we must embrace that uncertainty. By having tools that can scale with you as needed, you can remain agile and help both your business and your clients.
Purview provides access to in-depth property data solutions that estimate value and home equity, flag signs of potential fraud, verify legal details, and much more.
Learn more about our solutions by calling 1-855-787-8439 or visiting www.purview.ca.« Back to Blog