CoreLogic has announced a new data-enhanced, appraiser-certified evaluation tool to help mortgage lenders and servicers address new requirements issued in the 2010 Interagency Appraisal and Evaluation Guidelines (IAG). The Residential Evaluation Report from CoreLogic provides an alternative for federally-related mortgage transactions in instances where the IAG permits utilizing something less than a full appraisal, but requires more than a broker price opinion (BPO) or automated valuation model (AVM). The Residential Evaluation Report from CoreLogic provides six perspectives to arrive at the property’s estimated market value including a certified evaluation of property value with an appraiser’s opinion of value, a summary BPO, two Automated Valuation Models (AVMs) and two Indicated Value Approaches (IVAs).
The new offering helps servicers meet criteria set forth by the IAG, which were issued by the five federal financial regulatory agencies—the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the National Credit Union Administration (NCUA). The product also meets the Uniform Standards of Professional Appraisal Practice (USPAP) as a Restricted-Use Appraisal.
The IAG was established to set the standards for property valuation, differentiating and clarifying the appropriate use of individual assessment methods in determining estimated property value, and further defining “Evaluations” as an approved alternative. Appraisals, which are time consuming and cost intensive, are not always necessary; and BPOs and AVMs, without additional information, do not meet the new guideline requirements for certain federally-related transactions. The new product from CoreLogic offers an alternative that saves lenders time and money by leveraging the vast proprietary data available from CoreLogic to enhance and clarify its results.
“We developed the Residential Evaluation Report in direct response to requests from lenders and servicers for a solution to help them meet the new standards set by the interagency guidelines,” said Kevin Wall, senior vice president of CoreLogic Default Services. “Evaluations are not new, but the guidelines have now officially established this option as a step to bridge the gap between BPOs and appraisals. Utilizing the vast CoreLogic property database allows us to offer a data-enhanced valuation tool that few can match."
The Residential Evaluation Report incorporates current property-level data to provide the most accurate and timely valuation available. Information presented in the comprehensive tool includes:
►A complete BPO, with site visit by a broker/agent, property summary and photo of subject and comparable property characteristics
►Two AVMs, which provide a market value estimate from industry-leading CoreLogic AVMs including PASS, ValuePoint 4, PowerBase 6 and HPA
►Two IVAs based on proprietary CoreLogic data covering more than 97 percent of all property transactions in the U.S. The IVAs use as many as 90 search criteria to analyze the subject property against appropriate comparables and provide reasonable and tested value adjustments
►An independent appraiser’s opinion of value, including a desktop review and reconciliation comments by a certified residential appraiser
“The Residential Evaluation Report’s multiple perspectives of value offer a new level of confidence for lenders and servicers as they continue to address the challenges in this new era of regulatory oversight,” said David Williams, vice president of BPO Services for CoreLogic. “This allows for a much clearer view of where an individual property stands in the local market, complete with a certified appraiser’s estimate and comments, and it puts that information at the lender’s fingertips.”
