Interthinx has launched the Interthinx Conditioned Valuation Model (CVM), a unique, cost-effective integration of robust automated valuation technology and analytics tempered by a professional property inspection. This new approach to property valuation will provide lenders and servicers with a powerful choice that is more accurate than an AVM (Automated Valuation Model) and less expensive than a BPO (Broker Price Opinion). Interthinx is a leading provider of proven risk mitigation, fraud detection, and regulatory compliance tools for the residential mortgage industry.
“AVMs have become an industry standard and a valuation tool many rely on without question. Unfortunately, excessive AVM usage may have contributed to an epidemic of overvaluation fraud,” said Kevin Coop, president of Interthinx. “And valuation fraud is not diminishing. Our Mortgage Fraud Risk Report from the third quarter of 2009 confirmed property valuation fraud risk is up 46 percent from a year ago. With the new CVM, Interthinx can deliver affordable, real-time condition-based property values to the lending and servicing communities.”
The Interthinx CVM is strategically positioned along the continuum of existing property valuation products between AVMs and BPOs. At a cost lower than a standard BPO, the new Interthinx CVM allows for more reasonably priced and comprehensive due diligence for businesses requiring more information than a conventional AVM can offer.
The CVM starts with an AVM that uses MLS (Multiple Listing Service) and public data to factor current market conditions for the greatest accuracy. Then the CVM applies an adjustment based upon an exterior inspection of the property and neighborhood by a professional third-party inspector. The CVM report includes photos of the subject property, neighborhood condition, a condition-adjusted value, and market price trends.
“The CVM promises to advance mortgage due diligence to a new level,” said Mark Chapin, chief valuation officer for Interthinx. “The CVM combines powerful valuation analytics that factors property condition by an objective third party to produce an accurate, transparent property valuation at a cost-effective price.”
For more information, visit www.interthinx.com.