|Lenders Use First American RES' $3 No Risk AVMs To Value More Than $30 Billion in 30 Days
ANAHEIM, Calif., Dec 13, 2001 /PRNewswire via COMTEX/ -- First American Real Estate Solutions (RES), a member of The First American Corporation (FAF) family of companies and the first company to introduce a national automated valuation model (AVM) for residential lending, reported today that response to its new $3 no-risk, life-of-loan AVM generated record-breaking valuation activity following its launch on October 15, 2001. During the first 30 days following the launch, the company issued AVMs on properties totaling more than $30 billion in value.
In a bold move toward removing the remaining obstacles to widespread AVM adoption, First American RES created the industry's only low-cost, guaranteed electronic valuation that offers life-of-loan valuation privileges. These privileges, which entitle lenders to value a property securing a mortgage loan numerous times during the loan's life cycle, can be transferred to companies that purchase the loan or the loan servicing rights and are valid until the borrower's obligation is satisfied.
"The new AVM package from First American RES enables us to further incorporate AVM technology throughout our operations for maximum impact," said Bill Krueger, vice president of Ocwen Realty Advisors. "It allows us to continually monitor our risk position and manage our portfolio in real time."
In addition to current estimates of market value, users receive detailed information about the subject property and comparable sales supporting the value estimate. First American RES guarantees the use of the most current comparables in support of the valuation. Order and delivery options include the use of HTML, XML and a batch portfolio valuation service.
"We are pleased with the market response to the $3 no-risk, life-of-loan AVM," said George S. Livermore, president of First American Real Estate Solutions. "Our customers are identifying new lending opportunities and enjoying significant cost savings as they incorporate AVMs into their loan origination and servicing platforms."
The new valuation product is available as an option on any of the five leading AVM methodologies currently offered by First American RES. The company's AVM products include ValuePoint(R), 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, Windows(TM) desktop solutions or bulk licensing arrangements.
|First American RES provides advanced applications and property information for use by real estate and mortgage finance companies to help consumers and businesses buy and sell real estate; value residential and commercial properties; study real estate trends and neighborhood characteristics; and identify consumer prospects for financing, insurance and home improvement services. 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 2 million new transfers and mortgages each month.
The First American Corporation, based in Santa Ana, Calif., is the nation's leading, diversified provider of business information and related products and services. The corporation's three primary business segments include: title information and services; real estate information and services, which includes mortgage information services and database information and services; and consumer information and services, which provides automotive, subprime and direct-to-consumer credit reporting; direct-to-consumer public records reporting; resident screening; pre-employment screening; automobile title administration; property and automotive insurance tracking services; property and casualty insurance; home warranties; investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at www.firstam.com .
For further information, please contact Teresa Grove, Vice President of Marketing, First American Real Estate Solutions, +1-714-701-3780.
The First American Corporation
Teresa Grove, Vice President of Marketing
First American Real Estate Solutions