Wednesday, June 22, 2016

How AVM Helps Improve Portfolio or Assessment Performance

(Click on the image to enlarge)

When a Market AVM is developed using the recent arms-length sales, it generates an econometric solution (bottom graph).

As the model gets further fine-tuned and outliers removed (not shown here), the model R-squared tends to approach .90 and the COD/COV falls below 10, thus convincing technicians to apply the model on to the dated mortgage portfolio / prior assessment roll in order to have it re-priced / re-assessed in line with the current market. 

Check out our Custom AVM (Market, Benchmark & Grievance) Offerings:

1. Market AVM 

2. Benchmark AVM

3. Grievance AVM

4. Sales Ratio Study

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