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Making AVMs Even More Reliable

Mercury Network’s OptiVal Automated Valuation Model (AVM) Cascade has expanded to include HouseCanary’s AVM. The addition of HouseCanary brings yet another AVM to the Cascade to assist lenders in reducing risk and maximizing profit.

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The OptiVal Cascade now contains twelve AVMs, and is the only independent and objective Cascade that evaluates multiple AVMs to select the most accurate for a particular piece of real estate. OptiVal is updated every 90 days with the highest quality data representing the most recent sales – months ahead of county recordings and other data offerings.

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Mercury Network’s technology is used by nearly 1,000 of the nation’s lenders and appraisal management companies (AMCs) to manage real estate valuation operations and collateral risk. “We’re proud to be selected for the OptiVal Cascade,” said Chris Stroud, Chief of Research at HouseCanary. “Lenders need easy access to highly accurate data to mitigate risk and HouseCanary’s AVM has an excellent history of pinpointing property values. Objective testing will make our AVM more accessible to lenders when they need it most.”

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“The OptiVal Cascade is an independent test of multiple AVMs against the freshest test data available on the market today,” said Craig Zielazny, VP of Data and Analytics at Mercury Network. “Our objective is to include all the AVMs that lenders are interested in using, and providing them with the specific performance for a particular AVM in the subject property’s area. We’re pleased to welcome HouseCanary to the OptiVal Cascade.”

Founded in 2014, HouseCanary’s mission is to help people make better real estate decisions. Built on a foundation of great data, powerful models, and predictive analytics, the HouseCanary platform aggregates millions of data elements, including more than four decades of property data and a rapidly expanding arsenal of proprietary calculations and analytics, to accurately define and forecast values and market influences.HouseCanary is financed by notable investors including Hillspire (Alphabet Executive Chairman Eric Schmidt’s family office), PSP Growth/PSP Capital (firm founded by entrepreneur and former Commerce Secretary Penny Pritzker), Alpha Edison, ECA Ventures, Raven Ventures and others top Silicon Valley investors. The company is headquartered in San Francisco.

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Good Technology Wins Out

Good technology always wins out. The best of technology today will be rewarded by gaining market share and market adoption. For example, Freddie Mac has approved Platinum Data Solutions as one of nine authorized distributors of Freddie Mac’s Home Value Suite to mortgage lenders, servicers and other third parties, Platinum Data officials announced.

Freddie Mac’s Home Value Suite includes Home Value Explorer (HVE), an automated valuation model (AVM), and Home Value Calibrator® (Calibrator), a quality control tool that analyzes the relationship between key loan information, borrower information and collateral valuation data.

“We’ve been in discussions with Freddie Mac about our AVM calibration and testing program, and I believe our dedication to accuracy and suitability is a key reason they selected us a distributor,” said Phil Huff, CEO of Platinum Data.

Platinum Data is the largest independent reseller of automated valuation models in the country and the premier provider of collateral evaluation and quality technologies for the mortgage industry. As an authorized distributor, Platinum Data can now sell HVE to not only lenders, servicers and other direct users, but also third party resellers. Another distinction of being an authorized distributor is that Platinum Data is now able to provide Calibrator, which was not previously available through the company.

“Quality is very important to Freddie Mac, and Platinum’s OptiVal helps lenders and servicers ensure quality by determining the most suitable AVMs based on location and other risk factors,” added Huff. “With our mutual dedication to quality, this is a great fit.”

Each AVM’s accuracy varies by geographic area. In order to provide the highest levels of AVM accuracy, Platinum Data recently completed comprehensive calibration testing for all 18 AVMs in the OptiVal cascade, including HVE. Calibration testing assures users that OptiVal’s results are the most accurate, according to current market values.

About The Author

[author_bio]

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.