Pre-Application Analysis/ Underwriting Case Study: Originator Seeks Process Improvement in Pre-Qualifying Borrowers by Leveraging MAP AVM

Client’s Challenge

  • To increase pullthrough rates on borrowers and reduce costs associated with their mortgage banking business, a large originator sought to enhance the underwriting process by increasing the automation of collateral valuation.
  • For the past three years this lender had experienced an increase in fallout of applications to loans and much of this was attributed to a lack of tools to ascertain the underwriting and collateral quality of the property.

Our Solution

  • After reviewing the issue with lender production staff, the MAP Automated Valuation Model was identified as a potential solution to the problem.
  • The MAP Automated Valuation Model (AVM) is one of the most accurate AVMs in the market today that also has extensive property coverage,making it a natural lowcost solution for a variety of collateral valuation needs.
  • oneyear testing and benchmarking period of the tool was conducted by the lender to ascertain the potential benefit in screening more eligible borrowers more quickly during the prequalification process.
  • Following the test period, Five Bridges staff worked with the lender to deploy the model into their prequalification process.


Outcome

  • Six months after deploying the MAP AVM, this lender observed a significant increase in the processing speed for loan applicants, in turn increasing their loan closing volume.
  • The MAP AVM provided the lender with a lowcost but powerful assessment of property value and eligibility under various loan programs.