Clear Capital, LenderX Team to Mitigate Errors Contributing to Loan Repurchases


Loan repurchases increased from $1.1 billion in 2020 to $2.1 billion in 2022, according to a recent report from Sterling Point – and errors in appraisal value are cited as one of the top reasons for loan repurchases.

Even minuscule errors in appraisal value can have an impact on loan repurchase volume. To help mitigate these errors, valuation solutions firm Clear Capital is partnering with valuation solutions firm LenderX to give LenderX clients access to Clear Capital’s automated underwriting risk analyzer, AURA.

The AURA API solution allows LenderX to provide a streamlined collateral review process that is fully integrated within the LenderX valuations management system. AURA is designed to complement the use of UCDP/EAD results and allows LenderX customers to control automated ordering based on criteria like agency, loan type, loan amount, estimated value, investor, and Fannie Mae Collateral Underwriter (CU) score. The automated AURA report is available within LenderX, and through LenderX-integrated LOS platforms including Encompass and AIQ by ICE Mortgage Technology, Byte, MeridianLink Mortgage (formerly LendingQB), Constellation Mortgage Solutions and SimpleNexus.

“This partnership with Clear Capital is part of our ongoing efforts to provide our lender customers with access to the best valuation solutions and products in the industry,” says Randy Favero, CEO of LenderX. “Direct integrations such as AURA equip our customers with market-leading solutions today, and position them for the appraisal and valuation modernization changes being implemented by the agencies.”

Photo: Agence Olloweb

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