To increase pull–through 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.
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 low–cost solution for a variety of collateral valuation needs.
A one–year 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 pre–qualification process.
Following the test period, Five Bridges staff worked with the lender to deploy the model into their pre–qualification process.
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 low–cost but powerful assessment of property value and eligibility under various loan programs.