Lenders’ HIP Valuation solution ready to go says xit2
With the ODPM’s welcome announcement of 1 June 2007 as a confirmed date for the introduction of HIPs, the industry is moving forward with plans, strategies and solutions.
The core element of the Home Information Pack is the HCR (Home Condition Report) this will provide a highly detailed summary of the property which will be of great benefit to all involved in the process but not, a valuation of the property. This is obviously important to a lender and a consideration for lenders upon which lending decisions are based.
Lenders will be faced with the situation whereby their underwriters could receive a 26-page document, containing everything but this valuation figure. However, technology is available to condense this document into a more manageable summary to help the speed of producing offers, and offer a valuation solution, which fits neatly into the process.
As there is not a valuation figure with the HCR lenders will instead either:
- Contact the Home Inspector responsible for the HCR and request a separate valuation.
- Instruct a valuation from a separate valuer on their panel
- Connect to an AVM (Automated Valuation Model)
All of these options can be quickly and conveniently carried out though the use of robust technology.
Systems now exist to refine the 26-page report to a one-page summary, panel manage valuation instructions and even utilise direct interfaces with AVMs. These systems are already working in as-live environments and will serve as a reassurance for the market that there is a tick in the box next to this particular issue.
Paul Duckworth, chief executive officer of xit2 commented:
“The confirmation of a launch date by the ODPM means that the entire market can move forward in delivering new processes and procedures for the smooth introduction of HIPs.
Some concern has been raised that the 1st June launch could disrupt the busy spring and summer housing period but I believe that the planning time available and the fact that system will be in place long before this date makes this unlikely.
With technology and the motivation to use this technology so prevalent across the market, the Valuation issue, which many thought would case a problem, is sorted. It’s full steam ahead for HIPs.”
