Summary
As markets change,servicers and lenders need to choose a valuation company that can quickly and easily adapt. Questions to ask include: Does your valuation vendor use a quality evaluation logic that can be changed on the fly? The preferred valuation model would weigh more heavily on comps in an appreciating market and listings in a declining market.
Analysis
Is their model sophisticated enough to analyze the price per square foot of a given property type within a specific zip code as well as the month to month trend as it relates to the property currently being valued? What type of manual QC process does the valuation company have in place and how are the personnel recruited and trained? How responsive is the valuation company's IT department? That is,can they provide ad hoc reports quickly? Another important item to consider,and perhaps the most important:Is your valuation servicer broadcasting BPO assignments or placing each assignment with the most competent agent in the same marketing as the subject property? Finally,Does your valuation provider have the ability to offer additional value-added products and services in house or through strategic partnerships such as forensics,reconciliations,and risk assessment?
Important questions to ask as we try to bring back our industry.
