Automated Valuation Model Platform

Client Need

A forward thinking private mortgage-backed securities issuer required a streamlined, documentable process for valuing property in an increasingly restrictive regulatory environment. They sought to construct a next-generation automated valuation model (AVM) platform that would maximize hit rate, optimize accuracy and further automate business processes.  The client required a flexible partner who offered multiple AVMs and who was able to implement pre-defined rules for AVM selection and acceptance. 

Solution

The client selected Vector to deliver customized AVM sourcing and decisioning platform. Vector provided simultaneous access to several AVMs, including ValuePoint®4. Based on the criteria set by the risk manager, the system automatically selects the best valuation methodology and assigns market value within an acceptable confidence score range.  

Results

Vector enhanced the client's existing loan evaluation system by allowing them to merge AVM results with proprietary underwriting criteria to return the appropriate decision; therefore, reducing risk, lowering cost and raising this institution's underwriting process to a new competitive level.