GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
725326

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

Automated Valuation Models - threat and opportunity

Posted by on in ROYAL COMMISSION URGENT
  • Font size: Larger Smaller
  • Hits: 1183
  • 0 Comments
  • Print
Automated Valuation Models - threat and 
 
This article was written in 1998.
 
 
What is multiple regression analysis?
  
Before the term "AVM" became widely used, multiple regression analysis (MRA) was the most used term for computer based valuations.  
MRA has been around for many years, in many types of applications, for determining which variables are most important in determining an outcome. In valuation applications, an MRA is used to determine if square footage, lot size, age, quality, etc. affect property values, and by how much.....Appraisers can use MRA features in spreadsheet programs or statistical programs such as SPSS. 
What adjustments do AVMs make?
No commercially available AVMs let the user know the equations used in calculating values, as the equations are proprietary. Sometimes you can find out which variables are most important. A few let you see adjustments that were made on their appraiser emulation models, where adjustments are made on a grid, like on an appraisal report.
What about appraiser/user input?
Some AVMs allow user input, such as changing a square footage or inputting a time adjustment, and others don't allow any input. 
The main reason for not allowing user input is to eliminate the human element from valuation. These AVMs are seen as "pure" without human errors and bias. 

Good data is the key
Public records is the primary data source for all commercially available AVMs. This data is typically purchased by the AVM vendor. Some vendors collect part of their data, particularly if they work only a few states. Public records data is used for both the subject and the comps.
 
Who inspects the properties?
One of the major weaknesses in AVMs is a lack of a physical inspection of the properties.
Most lenders I have spoken with using AVMs for home equity and seconds don't have anyone drive by the properties. They see them as credit loans, with the collateral very secondary. Banking regulators, and many investors, agree. 
What's the best AVM?
No AVM is perfect. They all have data problems. The best AVM for a user gives the most accurate results with the most "hits," for their "comfort level" of acceptable risk. Some models perform better than others, but all depend on data to get reliable results. 
If you're trying to run an AVM in an area with few sales, it won't be very reliable. If the AVM database has no property characteristics for the subject property, it won't run if it doesn't allow user input.
If you're running an AVM from a vendor that also provides better data than another equivalent AVM, it will be more reliable..........
 
 
Attachments area
 
Preview attachment AVM's - the easy not the hard way.pdf
 
 
AVM's - the easy not the hard way.pdf
215 KB
 
 
 
 
 
 
 
Last modified on
Rate this blog entry:
0

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Tuesday, 04 August 2020