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Follow on Google News | Homequant.com Introduces REO and Foreclosure AVMLenders holding large inventories of REO and foreclosures (late stage) would be better served with Homequant's Foreclosure AVMs, not only to price their portfolios more accurately, but to prevent appraisal frauds as well.
By: Homequant Inc. In fact, everyone from the traditional AVM houses to the listing services to the national brokerage houses has realized that the foreclosure markets are not short-lived or temporary. Actually, the overall housing market has become semi-permanently bimodal (primary and foreclosure) Under the traditional AVM development process only the recent arms-length sales (often aided by the discounted seasoned listings to simulate the most recent market) are used to create representative sales samples to develop Multiple Regression Analysis (MRA) models, which are then applied on to the populations the samples are derived from. In other words, the traditional modeling samples ignore all foreclosure and short sales. However, to develop Foreclosure AVMs, the experts at Homequant derive modeling samples from the foreclosure- Of course, to bolster the sample size, they often group and model multiple contiguous markets together; for example, if the local MLS covers three counties, they tend to model them together drawing all of their foreclosure and short sales into the mix. Obviously, it’s easier for them to generate sales samples in those Metropolitan Statistical Areas (MSA’s) where foreclosures are common or are elevated. The lenders holding large inventories of REO and foreclosures (late stage) would also be better served with the proposed Foreclosure AVMs, not only to price their portfolios more accurately, but to prevent appraisal frauds as well. Those AVM values should be used as control values to trigger the Supervisory QC. If you’d like more information about their Custom AVM solutions, or to schedule an interview with them, please email them at: contact@homequant.com About Homequant Homequant is the inventor of the comparables- Homequant’s President published two books on econometric AVM. End
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