David Catt, COO of Hometrack, believes this is a direct result of the tightening markets: “As the credit crunch takes hold, we have seen the use of AVMs rise significantly. Although the use of AVMs for mortgage origination has remained constant, as users continue to use the valuation tool prudently, large financial lending institutions, rating agencies and investors are rushing to assess the value of their portfolios and the associated risks.
“A high quality AVM, which is accepted by leading rating agencies, represents a truly objective and independent valuation and offers superior risk management. AVMs not only bring transparency and accuracy but an on-going immediate surveillance capability.
“We are seeing huge demand from lenders for Risk Analytics as the market seeks ever greater levels of transparency within portfolios. Today’s market is forcing lenders and portfolio managers to assess risk and potential losses for each property or loan with greater accuracy; whether concentration, affordability, mark-to-market or actual value at risk on arrears cases sophisticated Risk Analytics is proving highly invaluable.”
