With home values going up and rates staying low, the coming year will present a great opportunity for growing your home equity business. To maximize the profitability of new home equity loans, consider re-thinking the traditional approach to property appraisals.
2055 and 1004 appraisals have been around for years and have traditionally been the only options that would ensure regulatory compliance. But that is no longer the case. As with any industry, real estate lending has evolved and with that evolution comes new appraisal solutions that not only keep you in compliance, but also lower your costs and shorten your application-to-close cycle.
The nextgen appraisal alternative
The industry leader in next-generation appraisal solutions is ValueNet. Owned by Accurate Group, ValueNet is currently the industry’s leading desktop appraisal suite and is in use by 21 of the top 25 home equity lenders nationwide.
In addition to leveraging state-of-the art desktop technology and a USPAP-compliant valuation process, the ValueNet suite also provides for both exterior and interior appraisal options – which provide alternatives to a 2055 or 1004 appraisal on home equity transactions.
Interior ValueNet (iValueNet), which was released by Accurate Group in 2015, combines the desktop appraisal solution with an interior inspection of the subject property. The interior solution broadens the utility of the product to allow it to be used on more complex properties and can replace the use of 1004 appraisals on home equity transactions. iValueNet testing shows this new solution delivers values comparable to a full 1004 appraisal faster than traditional appraisals (5-7 business days) and at a significant cost savings – $100 or more per appraisal.
Exterior ValueNet combines the desktop appraisal with an exterior property inspection. The exterior option can replace a 2055 appraisal and can save a lender up to $135 per appraisal.
In addition, Accurate Group has confirmed that either Interior ValueNet or Exterior ValueNet may be used on all portfolio loans regardless of loan amount (particularly loans greater than $250,000) in conformity with FIRREA appraisal requirements. Ask us for our whitepaper on this topic.
So far, home equity lenders testing and implementing iValueNet are targeting significant expense reductions by using iValueNet to eliminate greater than fifty percent of their full appraisal spend on 2016 originations. iValueNet has the potential to reduce a home equity lender’s cost per loan by greater than 10 percent. They also expect to improve application-to- close ratios while reducing their application-to-close timelines significantly – essentially closing more loans faster and at a lower cost.
On-Demand mobile technology
At the leading edge of innovation, iValueNet incorporates Accurate Group’s GroundWorks self-managing, mobile technology to streamline the property inspection process. For lenders looking to reduce their appraisal spend by eliminating the cost of full 1004 appraisals or by increasing the use of Automated Valuation Models (AVMs), the Accurate GroundWorks application streamlines the property inspection process for interior or exterior inspections and allows Accurate Group to deliver the most cost-effective property inspection, faster than any other provider in the marketplace.
What are you waiting for?
The ValueNet appraisal suite gives banks, credit unions and mortgage lenders an alternative to traditional, costly home appraisals for home equity loans. For the first time ever, lenders have a choice on interior property inspections that saves time and money without sacrificing quality or compliance.
With one simple change, you can improve the profitability of your home equity lending business. Contact Accurate Group for more information, or visit the ValueNet website for a complete overview of the ValueNet appraisal suite and the GroundWorks mobile app for property inspections.
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