Automated valuation models (AVMs) typically use data science and modeling techniques to produce an estimate of the current market value of a property. Clear Capital’s ClearAVM uses public records, proprietary data and nationwide multiple listing service (MLS) analytics to generate its estimates, making it one of the most comprehensive and accurate models on the market, Clear Capital claims.
The database that fuels ClearAVM’s modeling engine is updated hourly, which means ClearAVM users receive valuations that take advantage of the freshest information available.
LenderClose’s platform digitizes the underwriting process and speeds up the lending cycle. The Web-based hub gives lending staff instant access to the latest real estate lending technology, products and solutions so they can become dominant lenders in their local markets.
Credit unions and community bank lenders using LenderClose will particularly benefit.
These lending institutions typically rely on AVMs for three primary use cases: home equity lending, mortgage and home equity line of credit (HELOC) portfolio valuation, and pre-qualification for consumers in the early stages of the borrower journey.
Integrating ClearAVM access into the LenderClose platform expands the number of tasks loan officers can complete inside a single sign-on interface.
LenderClose and Clear Capital plan to expand integration of Clear Capital solutions into the platform, beginning with commercial evaluations later this year.
The demand for AVMs in commercial lending is expected to increase among the nation’s community lenders. That’s because the National Credit Union Administration (NCUA) in August raised the threshold for required appraisals in commercial real estate transactions from $250,000 to $1 million.