Valuation
In today's environment, the ability to assess collateral risk is critical. 406 Partners utilizes a proprietary modeling and rules-based valuation engine to dynamically adjust the valuation process to fit specific client needs and requirements.
Data is the bedrock of valuation at 406 Partners and property analysts have access to the largest data repositories in the country representing more than 85 percent of the nation’s property ownership records, with 575,000 new ownership records added every month.
406's proprietary valuation rules engine ties together multiple valuation inputs including AVMs, BPOs, appraisals, MLS data and public records to assign a value to each property.
406's valuation product suite includes:
- AVM Cascade provides a quick, efficient tool to screen for overvaluation and value inconsistencies. 406 Partners doesn't cascade loans through AVM models searching for any hits, 406 provides quality hits from major AVM models, providing a high degree of accuracy and quick turn time.
- 406 Risk Score reflects the grade of a loan's risk characteristics and streamlines the review process by targeting loans with high risk characteristics.
- Appraisal Risk Review is a desktop examination of key valuation factors. 406 analysts conduct a critical review of the appraisal, public record data, aerial photos, area maps, appraiser status and other information related to the property in order to derive a Valuation Supported Value ("VSV").
- Full Valuation Review provides a comprehensive review of the appraisal and key data points on loans considered to have a high risk of overvaluation. The full valuation review is designed to be a robust analysis of loans that have been through an Appraisal Risk Review and have shown patterns correlated with overvaluation or fraud. Reviewers assess overvaluation risk and conduct an in-depth analysis of comparable sales, current photos, comparable listings, and comparable values calculated by a local licensed real estate agent along with results from the Appraisal Risk Review.
- Appraisal Review is a critical review of the client-provided appraisal identifying red flags and key factors related to overvaluation or fraud. 406 valuation specialists review public and proprietary data to determine the quality and reliability of the appraised value.
- Broker Price Opinion is an alternative when a full appraisal isn't required and quick results are key. 406 Partners provides lenders and capital markets clients with a on-site review and comprehensive opinion of value through it's wholly-owned BPO subsidiary, Main Street Valuations. Clients rely on the speed and accuracy of 406 BPOs which include local MLS data and pictures of comparable properties.
- FEMA Inspection provides a cursory on-site inspection for clients who need a quick, inexpensive verification and certification of property condition. All inspection reports include exterior photos.