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LPS Launches New AVM Solution

NationalMortgageProfessional.com
Aug 01, 2011

Lender Processing Services Inc. (LPS), a provider of integrated technology, data and analytics to the mortgage and real estate industries, has announced that its Applied Analytics division has released the LPS Advantage Cascade AVM. This automated valuation cascade model is an open, independently supported and verified solution powered by AVMetrics, an automated valuation model (AVM) testing and auditing authority. With AVMetrics providing independent testing and verification, LPS Advantage Cascade ensures conformity with the latest Interagency Appraisal and Evaluation Guidelines by offering LPS and non-LPS products, to ensure unbiased and optimal AVM results for a specific property. LPS Advantage Cascade leverages multiple AVM suppliers and distinct databases, and is able to automatically determine which provider will deliver the most accurate results for any given market. The model preference table within Advantage Cascade includes 11 different AVM models and uses prior observations to identify the best AVM, down to the county level when possible. The model preference table is updated quarterly to ensure the most accurate AVM selection. Working with AVMetrics, LPS Applied Analytics ensures that all AVM products used in the LPS Advantage Cascade are held to the highest accuracy standards for AVMs. Testing conducted by AVMetrics has proven that less than 50 percent of today's AVM vendors currently meet these stringent requirements. While LPS Applied Analytics focuses on maximizing the accuracy and hit rate for the LPS Advantage Cascade, AVMetrics determines exactly how this is accomplished. To ensure LPS Advantage Cascade's independence and compliance with Interagency Guidelines, AVMetrics is the only organization that has access to the underlying cascade structure. AVMetrics has no financial stake in the LPS Advantage Cascade, which further reinforces independent, unbiased results. With LPS Advantage Cascade, lenders have access to independent testing by AVMetrics, which is included in the cost of the cascade. Lenders also receive quarterly cascade updates based on new testing and/or the inclusion of new AVM brands. Lenders are given the option to secure customized due diligence reports from AVMetrics that detail the performance of LPS Advantage Cascade in a specific market. "The latest Interagency Guidelines demand true independence when it comes to AVM selection," said Dan Berman, president of LPS Applied Analytics. "That level of independence is best achieved with an open cascade that delivers the most accurate AVM solutions for any given market, without bias. Our collaboration with AVMetrics enables LPS to deliver the most independently verified cascade on the market."
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