Evaluating Your Portfolio in an Uncertain Market – An eBook for Lenders of All Sizes
Automated Valuation Power: Lending Operations, Marketing, Collections, and Enforcement
While Automated Valuation Models (AVMs) are widely being used for property valuation – there is more to the technology than just that.
The wealth of information contained within them can open the doors to many more possibilities. AVMs can also prove to be immensely useful when it comes to collections, enforcement, marketing, and even the overall risk assessment of your portfolios.
Benefits on a Macro Level
To succeed in the fast-evolving Canadian real estate market, it is essential to stay updated about all the developments that are taking place and ensure that you can make accurate predictions and follow them with relevant action plans.
AVMs can help you understand the overall condition of the market – equipping you with all the information you need for trend analysis, identifying hot emerging markets, and ascertaining which property types should you focus on.
In addition to this, you can use this data to revisit your mortgage marketing and ensure that those valuable marketing dollars are properly allocated.
For example, when you have the data required to assess entire neighbourhoods and cities, or are able to analyze data by property type, you can move around your marketing dollars to the regions where there are more opportunities.
Benefits on a Micro Level
AVMs can also help you identify opportunities within your existing deals.
For instance, by leveraging AVM, you can see if the value of the subject property is substantially higher than the stated value and pursue upselling opportunities.
AVMs can significantly reduce your mortgage underwriting costs too. They’re less expensive than appraisals and provide you a preliminary picture. This helps identify issues at an earlier stage as well as optimize full appraisals at a later stage.
Get Operational Advantages
There are a number of operational advantages associated with AVMs including:
- Due diligence – Your due diligence process becomes faster and smoother. For instance, they can help identify if there are undisclosed mortgages or registered mortgages that look significantly different than what the client indicated in their application. The AVM can be obtained at the same time as the credit report and other initial information so that you can make accurate assessments.
- Identifying fraud – AVMs allow you to look at registered mortgages and other information to validate customer disclosure. This means that the risk of fraudulent activities reduces significantly.
- Close deals faster – As AVMs are generated instantly, in real-time, you can access them online whenever you need them and speed up the mortgage application process – allowing your team to close deals more effectively and efficiently!
Up Your Collections and Enforcements Game
AVMs can help with collections and enforcement.
They enable you to have a bird’s eye view of your receivables against the value of your portfolio. With AVMs, you can also get a quick, real-time snapshot of your security and equity position.
When it comes to the individual deals you’re working on, AVMs can provide you the data needed to ascertain the property’s potential sale value against what is owed. You can also identify other assets that your debtor has. This information can come in handy for your collections team.
With Purview, you can do all this and more!
You can use the Purview AVM to ensure that you’re always aware and agile.
Purview’s AVM uses up to date data from the Province of Ontario Land Registration Information System (POLARIS). Find out how you can unlock more opportunities by calling us on 1-855-787-8439 or visiting www.purview.ca.« Back to Blog