ValuePoint® 4
Affordable Valuation Analytics for Distressed Properties – ValuePoint® 4
Cost, speed, and accuracy are essential when evaluating potential mortgage defaults and making critical decisions between forbearance and foreclosure. Since a significant percentage of delinquent loans may ultimately cure, the costs associated with property valuations are often unrecovered, leading to diminished profits for lenders. ValuePoint® 4 Default offers an advanced, affordable analytical solution that instantly provides robust disposition values and actionable decision-making insights directly to your desk.
Why Traditional Valuation Methods Fail in Unstable Markets
The Shortcomings of Industry-Standard Approaches
During economic downturns, when default volumes rise sharply, conventional foreclosure valuation methods fall short. Traditional automated valuation models (AVMs) often overvalue distressed properties, mistakenly assuming homes are in average condition. Broker Price Opinions (BPOs), while useful, are expensive and time-intensive to produce. Although professional appraisals offer the highest accuracy, their costs and turnaround times can hinder timely decision-making.
How ValuePoint® 4 Default Revolutionizes Distressed Property Valuations
ValuePoint® 4 Default, developed by First American CoreLogic, uses a hybrid valuation model designed specifically for servicers to deliver accurate loan-to-value ratios within the critical first 90 days of delinquency. Unlike traditional models, it accounts for intangible factors like actual property condition, unverified improvements, and neighborhood influences that often contribute to distress. Employing proprietary algorithms, neural networks, and advanced reconciliation methods, ValuePoint® 4 Default produces conservative, realistic, and highly reliable valuations for distressed properties.
Additional Benefits
- Affordable, fast disposition valuation tool to streamline workflow
- Proven accuracy over traditional AVMs and many BPOs
- More thorough property evaluation through detailed data report
- Capability to evaluate more loans sooner, without increasing current budgets
- Foundation to validate and compare BPO provider accuracy
Valuation Accuracy: The Ultimate Measure of Success
TAccuracy remains the paramount goal for any valuation model. In a comprehensive study comparing ValuePoint® 4 Default with a conventional Automated Valuation Model (AVM), ValuePoint® 4 Default demonstrated significantly superior performance across more than 20,000 real estate-owned (REO) properties. It overestimated REO sale prices by a mere 3.6%, in stark contrast to the 32.4% overestimation by the conventional AVM.
Further testing against traditional Broker Price Opinions (BPOs), using a sample exceeding 800 REO sales, revealed that ValuePoint® 4 Default’s overvaluation rate was half that of BPOs. Moreover, ValuePoint® 4 Default achieved pricing within 10% of the eventual sales price 44% of the time, outperforming the BPO accuracy rate of 40.3%.
This compelling blend of precision, affordability, and rapid turnaround solidifies ValuePoint® 4 Default as an indispensable tool for early-stage delinquency valuations. It also serves as a reliable foundation for validating and enhancing the accuracy of BPOs.
Comprehensive Data-Rich Reports Empower Workflow Decisions
ValuePoint® 4 Default delivers results through user-friendly, web-based reports available in HTML, XML, or bulk processing formats. These reports provide more than just disposition values; they include:
An optional on-site property inspection report offers visual and condition verification, featuring five detailed photos of the property and its surroundings—further supporting accurate valuation and risk assessment.
Harness the power of ValuePoint® 4 Default to achieve affordable, rapid, and precise valuations on distressed properties—optimizing your mortgage default decisions and protecting your bottom line.