First American Real Estate Solutions Announces Release of Vector(TM) Automated Valuation Model Risk Management Platform
|October 26, 2004|
SAN FRANCISCO , /PRNewswire-FirstCall/ -- First American Real Estate Solutions (RES) announced the release of Vector(TM) an automated valuation model risk management platform that enables lenders to expand their use of automated valuation models (AVMs) while reducing costs and compressing underwriting process time. Vector provides access to the top AVMs in the industry, including First American RES'
ValuePoint(R)4, PASS(TM), HPA and PowerBase; Freddie Mac's HVE(R); Veros Software's VeroValue(TM); Fiserv's CASA(R); and ValueWizard(TM).
All of the top mortgage lenders have incorporated AVMs into their business systems and processes to take advantage of the cost and time efficiencies that AVMs offer over traditional appraisals. As part of the deployment of AVMs, top lenders have established business rules to determine how a property valuation decision will "cascade" through a predefined set of property valuation choices until an acceptable result is achieved. These business rules are unique to each lender, and rule enforcement traditionally has been accomplished through careful training and ongoing supervision. Vector streamlines this process and mitigates risk by providing an easy and flexible means for mortgage lenders to automate their AVM acceptance policies through the use of advanced decisioning and analytics. Additionally, Vector allows more lenders to take advantage of the benefits of AVMs by providing a cost-effective way to control and monitor AVM use.
"Vector is a configurable, intelligent and secure platform that allows you to manage AVM use according to your underwriting rules, no matter how simple or complex," said George Livermore, president of First American Real Estate Solutions. "Vector supports our goal of providing clients with more valuation choices delivered through a highly reliable platform that gives them the confidence of knowing that their guidelines are being followed."
Vector provides the highest possible AVM hit rate and accuracy at the lowest cost by enabling risk managers to optimize the order in which AVMs are run based on a number of criteria which include geography, estimated value, loan amount, loan-to-value, and loan type, to name a few. Risk managers can also set rules for acceptance of AVM results such as meeting a minimum threshold for confidence score and, if they do not receive an acceptable AVM result, they can trigger the selection of other property valuation methods such as broker price opinions (BPOs), insured AVMs and traditional appraisals.
Vector is designed to support The Office of the Controller of the Currency (OCC) guidelines for sound use of computer models. In keeping with OCC guidelines, Vector provides real-time access to management reports on AVM performance, enabling risk managers to continuously review and improve their business rules regarding AVM usage. Additionally, Vector supports rigorous testing of AVMs and generates the documentation needed for regulatory compliance with legislation such as the Financial Institutions Reform Recovery and Enforcement Act (FIRREA).
Source: First American RES