The software firm, which manages valuations instructions and describes itself as “a sort of post office between lenders and surveyors”, says valuations will be filled out 100% online by the end of 2012.
The firm is currently in the process of developing a software system that will mean surveyors can draw floorplans and fill out every valuation in full on a tablet computer they take to the property.
It uses a windows-based programme with controlled stages to the valuation, removing margin for human error and creating a more auditable trail for compliance purposes.
James Sherwood-Rogers, managing director of Quest, said: “This will change the valuations link in the chain making it more accurate and ensuring all the relevant information needed by lenders is completed. The system controls what the surveyor has to fill in and ensures they don’t miss information out.
“There’s much less risk for lenders and also valuers will be able to argue the case for reducing their professional indemnity insurance because this will reduce their own risk too.”
Sherwood-Rogers says the new system will be more efficient as it will learn to auto-populate much of the valuation report when instructed.
This morning the Financial Services Authority published a thematic review of lenders’ systems and controls to detect and prevent mortgage fraud, which highlighted valuer relationships as an area of concern.
Speaking at the FSA’s financial crime conference this morning Tracey McDermott, acting director of enforcement and financial crime at the FSA, said: “The report showed that, although lenders have made some improvements, there are still weaknesses common to many firms.
“As a result of the findings, some lenders will have to implement remedial programmes to strengthen their anti-fraud systems and controls. The FSA will continue to focus on lenders’ compliance in this area."
The fraud report said: “Properties can be deliberately overvalued to deceive the lender about the true nature of the collateral for the loan.”
It said examples of good practice in managing valuer relationships included where: “A firm checks whether third parties maintain professional indemnity cover and a firm has a risk-sensitive process for subjecting property valuations to independent checks.”
