ValuePoint® 4

Affordable Valuation Analytics for Distressed Properties – ValuePoint® 4

Cost, speed, and accuracy are critical to evaluating potential mortgage defaults and deciding between forbearance and foreclosure. Recognizing that a significant percentage of delinquent loans may ultimately cure, expenses tied to valuations are seldom recovered, resulting in lost profits for lenders. ValuePoint® 4 Default is an advanced and affordable analytical tool that instantly delivers solid disposition value and decision-making information to your desk.

Traditional Approaches Fall Short

Industry-standard methodologies for valuing foreclosures fall short during periods of economic instability when default volumes increase. Classic approaches suffer from being too costly, time-consuming, or inaccurate. Traditional automated valuation models (AVMs) tend to overvalue distressed properties because they assume the home is in average condition, which is often untrue. Broker price opinions (BPOs), valuations compiled by real estate professionals, have been a core resource for pricing defaults. Problems are inherent, however, because BPOs are expensive and time-consuming to produce. Professional appraisals are most likely to be accurate, yet they are the most costly and time-consuming to complete.

Accounting for Intangibles

First American CoreLogic’s new valuation tool, ValuePoint® 4 Default, is a hybrid model compensating for traditional model valuation limitations, delivering fast, affordable, and consistently high reliability on properties with delinquent or defaulted mortgages. It is especially suited for servicers seeking more accurate loan-to-value ratios within the critical first three months of delinquency. ValuePoint 4 Default assumes possible and predictable deficiencies usually associated with distressed properties—property-specific and fundamental neighborhood dynamics—that conventional approaches often miss. Homes may be in less than average condition, purported improvements may not exist, and there may be external, negative factors contributing to delinquency or default. Logic built into ValuePoint 4 Default tempers distressed property analysis, consistently delivering more conservative, realistic, and reliable valuations. Its performance is enabled through index, assessment, neural-net methodologies, and proprietary reconciliation procedures.