The Dodd-Frank legislation identified that for the origination of a loan for the purchase of a primary residence, Broker Price Opinions may not be used as the primary basis of value.
“Section 1126 from H.R. 4173: In conjunction with the purchase of a consumer’s principal dwelling, broker price opinions may not be used as the primary basis to determine the value of a piece of property for the purpose of a loan origination of a residential mortgage loan secured by such piece of property.”
This extremely narrow prohibition opens the door for BPOs to be used as a primary valuation method in many other areas including loan servicing, refinancing, REO and short sale pricing, portfolio review, quality control as well as others. Additionally, BPOs can be used as a secondary valuation method in the origination of a primary residence.
“Given this extraordinary market opportunity for Broker Price Opinions, and the opportunity for lenders to rely on this class of valuations in so many different areas of their business, we believe it’s more important than ever for lenders to require quality in these products,” said First Valuation President Michael S. Richardson. “Our goal, as a company, is to set the standard of what customers look for in BPO quality.”
To meet this goal, First Valuation takes extra steps throughout the process to reduce risk, enhance overall quality and prevent fraud, mimicking the steps required in the appraisal process. The company’s panel of more than 65,000 local market experts provide precise opinions using the company’s data driven, award-winning V3 technology. Every BPO must pass an automated completeness and quality control check comprised of more than 600 validation points before it can be submitted by the agent. Once received, every single BPO is manually reviewed by the company’s in-house quality control department to ensure accuracy, quality and consistency in each report.
“We’re able to leverage our unique processes and technology, along with our highly-skilled quality review team, to provide what we believe are the highest quality Broker Price Opinions in the industry,” said Richardson. “We’re a company that focuses on quality above all else and that shows in our BPOs.”
BrokerPriceOpinion.com, a First Valuation company, has recently been recognized in the industry for utilizing and creating the latest BPO technology, having been recognized for Mortgage Technology’s 2011 award for “Top Service Provider”.
First Valuation will be in Chicago for the Mortgage Bankers Association’
About First Valuation
First Valuation is an industry leading valuation services provider. Launched from the foundation of its sister company BrokerPriceOpinion.com, which was founded in 2004, First Valuation provides highly customized nationwide valuation solutions that allow client specific rules and criteria to be included in its automated quality control process. The company offers both residential and commercial valuation products including BPOs, appraisals, automated valuation models (AVMs), photo and condition reports, retrospective valuations and review products. The company utilizes a combination of unique placement processes, local market experts, state-of-the art technology and expert quality review to provide the highest quality products in the market. For more information, please visit www.FirstValuation.com or call (303) 991-9919. The company’s social networking can be accessed on Linked In (First Valuation), Facebook (First Valuation) and Twitter (@firstvaluation)
Marketing Manager, First Valuation