CIC-Credit Information Center of Nashville

AVM stands for Automated Valuation Model and is typically referred to as a report that estimates the value of a property based on historical data of properties and projection of property values. In layman terms, AVM is an automated appraisal which takes seconds to generate a value estimates versus a manual appraisal which takes days to complete.

Similar to appraisal, AVM is more or less is a subjective measure relative to the data and methodology that were used. This means that the estimated value and confidence score may vary among the different AVMs and does not mean that one AVM is more valid than the others in all cases.

The underlying assumption in selling AVM is that lenders accept AVMs or that they can be convinced that AVMs has reached a maturity level where the valuations are accurate. AVMs are gauged primarily on their accuracy (confidence score) and hit rate (coverage). Confidence score is evaluated with respect to trustworthy benchmarks, such as an arms-length sales prices and conformity of the property. A low
confidence score usually means the subject property was in a non-conforming area or exhibited physical characteristics that were not found in many of the neighborhood sales. Low confidence scores may be found in areas where property sales data is sparse and sales exhibit a somewhat larger range of values. The hit rate is the ratio of AVM values delivered for valid property addresses submitted.

CASA provides AVM services to eight of the nation's top ten banks, delivering fast, statistically accurate home valuations. These leading institutions, and many others, trust CASA for applications that include appraisal substitution, collateral scoring, customer retention, appraisal QC, direct marketing, collections and loss mitigation, portfolio due diligence and more.

CASA leverages a very large, meticulously filtered property records database and multiple, market-specific analytic approaches to estimate current market values for individual residential properties.

While the algorithms that comprise this unique system use several inputs that an appraiser does - for example, comparable sales, home characteristics and time adjustments - CASA does not emulate the traditional appraisal process. Rather, CASA is engineered and continuously calibrated to be the optimal, fully-automated property valuation solution for meeting lenders' rapidly evolving needs.

Unlike most AVMs, the CASA system calculates property value estimates in real-time. This processing technique - which still renders CASA value estimates in seconds - serves to further enhance the accuracy, hit rate and safety of the service for our lender customers.

Basis 100 services the top 20 commercial banks in the nation today including Washington Mutual, IndyMac Bank, and Country Wide. PASS and HPA cover over 1300 counties in 45 states.

PowerBASE 1.0 (PASS) - provides current market value estimations in online, real-time fashion for residential properties. These valuations are suitable for use in a variety of contexts from loan origination to secondary marketing and loan servicing. Valuations are available in incremental service levels that allow the best-fit of technology to the business application.

HPA - powered by MortgageRisk technology, is an automated valuation model known throughout the industry for generating precise, immediate and reliable residential property valuations. The powerful technology behind this model uses a hedonics/location-based/indexing methodology to create a statistically solid home valuation tool.

1. Automated underwriting and origination
2. Pre qualify
3. Collateral scoring
4. Appraisal QC
5. Loss mitigation
6. Portfolio valuations
7. Marketing programs
8. Evaluating insurance needs

As an example, an appraiser may use an AVM to make sure that his appraised value for a property is reasonable. A lender may use an AVM to make sure that the stated value of the property that comes from the broker/consumer/appraiser is accurate, just as the lender would pull its own credit report on the consumer to make sure that the broker’s credit report is not fraudulent.

Depending on the lenders underwriting the loan, certain AVM can sometime be used to replace an appraisal on a loan because it is cheaper and reduces the amount of time needed to close from days to seconds. AVM are typically accepted by lenders on refinances or HELOC where there is less risk involved.

To sign up is simple just call 800-352-5882 or Click here to sign up via the internet and ask your sales representative to sign you up for avm access thru the CreditAPI interface, it is quick and easy.

Try it today!