Alternative Valuations - Reemerging

The reemergence of regression analysis tools is surging as lenders and servicers seek greater credibility relating to their collateral valuations. Recent regulations expand the scope of some loan product valuation methods, stipulating the requirement for an appraisal (instead of an evaluation). Appraiser generated alternative valuations are meeting the need for greater accuracy and credibility while also providing a price point competitive to the historic approach (tax cards, BPOs, internal staff, etc).

This emergence seems to “have legs” as greater scrutiny is applied to collateral valuations and subsequently as appraisers proactively document their valuation methodologies. The immediate need seems to be related to portfolio and home equity products. Longer term, appraisers skilled in sophisticated and statistically relevant analysis will maintain substantial work files supporting their professional opinions.

Institutions exercising appraiser alternative valuation services need effective ways to identify appraisers possessing competency in exercising contemporary regression tools.AIMS provides appraisers with the ability to differentiate themselves from the “pack” through profile competency attributes. Institutions are able to directly tap the appraiser’s attested competency and interest in alternative valuations though AIMS appraisal request workflow.