The new product delivers estimates of property sale value achieved under conditions of forced sale or in circumstances of repossession.
Utilising a combniation of exclusive and publically available data sources, the Calnea Repossessions AVM is a product of granular analysis of the impact of property type, georgaphy and market liquidity factors on the supply and demand levels normally experienced when a property is sold following repossession.
Having found very large variations in discounted values across market segments and within small geographic areas, Calnea believes there is a strong need for a product that can deliver more accurate assessment of Loss Given Default.
Jonathan Upton, business development director of Calnea Analytics, said: "The Repossessions AVM has been produced following consultation with lenders, and has grown out of a statistical review of a substantial body of repossessions data.
"Coupled with our AVM, we are able to provide unique discount factors for properties based upon the granular analysis possible of this, thankfully small, market segment. Lenders can use this input as part of general reviews of loan book risk and to assist with their Loss Given Default calculations, which forms a key part of their capital adequacy calculations."
