CoreLogic, a provider of information, analytics and business services, has announced the LoanSafe Appraisal Manager is now available to lenders, investors and appraisal management companies (AMCs) that require a more complete and accurate view of appraisal risk. LoanSafe Appraisal Manager is a comprehensive easy to use solution that integrates robust data sets from resources such as the Multiple Listing Service (MLS) with exclusive national listings from Partner InfoNet, and Automated Valuation Models (AVMs) along with an array of capabilities including an advanced analytic model, configurable tools, a compliance rules engine, and an overall risk score. The LoanSafe Appraisal Manager risk score enables reviewers to quickly and accurately prioritize appraisals at the highest risk of repurchase and allocate review resources more effectively.
“Ensuring appraisal accuracy is a major priority for lenders, investors and AMCs,” said Susan Allen, vice president of collateral solutions at CoreLogic. “Because accurate appraisals are a key component of mortgage origination and loss mitigation decisions, CoreLogic developed LoanSafe Appraisal Manager to easily identify appraisals that may have issues such as overvaluation, having been influenced by misrepresentation or fraud or suffer from non-compliance with applicable appraisal guidelines or standards.”
LoanSafe Appraisal Manager was developed using patented and patent-pending technology that enables the delivery of accurate and reliable valuations. Recent CoreLogic testing revealed that appraisals that scored in the highest risk category by LoanSafe Appraisal Manager were five times more likely to require a significant value reduction than those appraisals with the lowest risk scores. Additionally, loans with the highest loss-risk score were 15 times more likely to experience an early default. LoanSafe Appraisal Manager further refines valuation risk by leveraging CoreLogic AVMs in use by 17 of the nation’s largest 20 lenders.
The LoanSafe Appraisal Manager analytic model evaluates relevant risk factors, including:
►Appraisal integrity: Analyzes the appraisal for completeness, consistency, comparable selection and compliance with FIRREA, USPAP, FHA, VA, GSE restrictions and Uniform Appraisal Data standards.
►Valuation risk: Considers the likelihood of over and undervaluation by comparing a property to values established in the surrounding neighborhood.
►Loss risk: Examines the risk of default and foreclosure due to misrepresentation risk, including potential fraud, as well as by considering local market default and foreclosure data.
LoanSafe Appraisal Manager automatically validates data and provides an easy to read, detailed report that gives side by side comparisons of appraisal data, public record information and data from the MLS (where available).