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Platinum Data now offering industry’s first off-the-shelf, 100% objective, accuracy-tested AVMs
ALISO VIEJO, CA (February 18, 2014) – Platinum Data Solutions has completed accuracy testing on all of the18 non-proprietary automated valuation models (AVMs) it resells, providing lenders and servicers with the industry’s first and only off-the-shelf, 100% objective, accuracy-tested AVMs. When these accuracy-tested AVMs are used in conjunction with OptiVal, the industry’s only technology for determining AVM suitability, they allow lenders and servicers to confidently select and build the most suitable, accurate AVM cascades in just moments.
Platinum Data is the premier provider of collateral evaluation and quality technologies for the mortgage industry, and the industry’s largest independent provider of AVMs. Its comprehensive, AVM accuracy testing program is the result of months of intense evaluation and analysis involving all 18 non-proprietary AVMs and over 27,000 properties across the U.S. The testing program is part of a regular, on-going effort to elevate AVM accuracy for its customers.
“No other independent AVM provider is doing anything near this level of accuracy testing,” said Phil Huff, CEO of Platinum Data. “Until Platinum, the only companies that conducted in-depth AVM accuracy testing were costly third parties or large AVM providers that test their own models. We’re the only company providing this level of AVM accuracy, cost-effectively and with complete, 100 percent objectivity.”
Over one billion AVM reports are used each month. It’s estimated that hundreds of millions of those are being used by lenders and servicers for a variety of mortgage activities, such as home equity lending, quality control, portfolio analysis, mortgage pre-qualifications, and more, making them the industry’s most used collateral evaluation tool.
While AVMs can offer a fast and economical solution for evaluating property values, they can pose a financial risk if an unsuitable AVM is used. Each AVM’s accuracy varies according to a number of factors, such as the intended use of the evaluation, property location, individual property characteristics, and more. Assessed values can vary by 20 to 30 percent, or even more, based on the model used. Inaccurately over- or under-valuing a property can result in thousands of dollars in lost liquidity, missed sales opportunities, and a heightened risk of compliance violations and buybacks, along with their associated costs.
Third-party services that test AVM accuracy charge $50,000 to $100,000 per analysis. In order to keep current, companies using AVMs should have the testing performed approximately every quarter, which can cost upwards of $200,000 each year.
“Most companies don’t realize how much AVM inaccuracy is costing them,” said Huff. “I can guarantee you that 99 percent of lenders and servicers using AVMs are spending thousands more than they have to, whether in accuracy testing services or by basing decisions on erroneously over- or under-valued properties. Companies need to be aware that just because AVMs have a low price point, it doesn’t mean they don’t have an impact on the balance sheet. They do, and it’s significant.”
Platinum Data is the industry’s largest independent provider of automated valuation models.
About Platinum Data Solutions Platinum Data provides technologies that help mortgage lenders, servicers, investors and appraisal management companies ensure quality, value collateral, and identify and manage collateral risk. Its online platform and analytical tools are being used by hundreds of companies to perform due diligence, prevent buybacks and protect billions of dollars in assets across the U.S. The company’s RealView system revolutionized the way the industry reviews appraisals, while its AVM offerings provide a truly unbiased perspective on collateral valuation. Platinum Data Solutions is based in Aliso Viejo, California and was founded in 2002. For more information, visit PlatinumData.com, follow @Platinum_Data or email info@PlatinumData.com.