The model allows lenders to shorten closing times and minimize origination costs
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Independent Settlement Services is adding an automated valuation model (AVM) to its offering of national appraisal and real estate valuation products.
The offering is the result of a collaboration with HouseCanary, a provider of real estate data and valuation products for the mortgage industry.
The model, called Value Report, allows instant determination of single-family home and condo values. Independent said there has been demand for residential property valuations with higher quality and better accuracy as AVMs have become widely used and accepted. AVMs allow home-equity lenders to minimize origination costs and shorten loan closing times.
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Aside from property valuation, Value Report provides market risk assessment and real estate market data whether for single properties or entire portfolios. The model draws on proprietary algorithms from HouseCanary that uses data from over 1 billion US home transactions.
Other features of the Value Report are comprehensive property details and a suitability score that measures valuation confidence. Additionally, the report’s three-year value forecast provides lenders with insight into the local market. The report further provides a ranking of the subject property compared to a set of algorithmically selected comparables so lenders can validate their valuation against the local market context.
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"Working with Independent, HouseCanary is excited to offer valuation models with unprecedented accuracy and coverage, which is what ultimately appeals to lenders," said Martin Morzynski, chief marketing officer of HouseCanary. "Our algorithms analyze over 1 billion residential transactions over the last 40 years against macroeconomic drivers of demand, incorporating schools, crime and other current drivers at the block level to achieve this level of accuracy. The result is a modern AVM that helps lenders originate and close loans with confidence."
