|First American Real Estate Solutions Announces No-risk, Life-of-loan Automated Valuation Model
Company Guarantees Model Performance
ANAHEIM, Calif., Oct. 15, 2001 - First American Real Estate Solutions (RES), a member of The First American Corporation (NYSE: FAF) family of companies and the first company to introduce a national automated valuation model (AVM) for residential lending, today announced the first no-risk, life-of-loan AVM to serve residential mortgage lenders and servicers. In a dramatic move that redefines conventional AVM offerings, First American RES will provide property valuations over the life of a loan for a one-time fee of $3. The company guarantees that the data used by the models will be the most current available and will waive its fee if the lender does not accept the initial valuation.
Life-of-loan valuation privileges entitle lenders to value a property securing a mortgage loan numerous times during the loan's lifecycle. These privileges can be transferred to companies that purchase the loan or the loan servicing rights and are valid until the borrower's obligation is satisfied.
"By creating a no-risk, life-of-loan AVM we are removing the remaining obstacles to widespread AVM adoption," said George S. Livermore, president of First American RES. "Further, we continue our long-standing tradition of being the first to market with innovative solutions that help our customers improve their operating efficiency and market responsiveness."
The new valuation product is available as an option on any of the five leading AVM methodologies currently offered by First American RES, the first company to provide multiple models to assist lenders in streamlining property valuation. The company's AVM products include ValuePoint®, which has been independently evaluated and approved for mortgage underwriting use by a major ratings agency; and AREAS, which uses a patented, automated neural network (ANN) approach to calculating the market value of residential properties.
First American RES is the only company to control every aspect of AVM performance, from data collection and standardization to delivery of real-time valuations with supporting information through a variety of channels, including Web browsers, XML feeds, wireless connections, private label programs, WindowsT desktop solutions or bulk licensing arrangements.
The company compiles its real property ownership, sales and financing data from public record, appraisal and multiple listings service providers, and standardizes this data expressly for property valuation and real estate marketing applications. Its data coverage extends to 85 percent of all U.S. real estate activity, the broadest reach of any data provider. It updates its database of property profiles and real estate transactions daily, adding nearly two million new transfers and mortgages each month.