Phone: (800) 345-9494
Fax: (800) 343-4294
Email: ssa@ssaaci.com

APPRAISAL SERVICES

The real estate appraisal plays a significant role in the risk management phase of the loan process. As a loan originator, investor, or underwriter, you need the assurance that you have the appropriate property value to arrive at a loan amount and assess the property as collateral. Security Search & Abstract Company offers one of the best Automated Valuation Model (AVMs) available to assist you with objective and unbiased valuation data in a timely manner.

Home Value Explorer®

For over 15 years, Freddie Mac has effectively employed AVMs internally for its own risk and portfolio management. Since inception over a decade ago, AVM technology has advanced the world of automated valuation services from novelties to necessities. Today, AVMs have become an integral part of today's mortgage market and are efficient, effective tools for staying competitive. AVMs expedite processes, lower costs, and minimize risk. Freddie Mac's Home Value Explorer (HVE) has taken automated valuation technology to a higher level and continues to improve upon it.

Supported by a team of experts, HVE streamlines the lending process by cutting the collateral valuation cycle down to seconds, while saving hundreds of dollars on each transaction. HVE is one more tool offered by Freddie Mac to potentially simplify the mortgage process and reduce costs for mortgage industry professionals and consumers.

• Supports many typical lending functions including
  • Processing second mortgages
  • Home equity loans and home equity lines of credit
  • Loss mitigation
• Supports processes related to purchase, sales or construction homes
• Supports processes related to evaluation insurance needs
• Supports Quality Control (QC) processes

Precision Matters!

When choosing an AVM, it's important to consider coverage, vendor reputation, current technology capability, and price, but the most crucial factor in choosing the best AVM is precision. Relatively small differences in precision will quickly translate into lost customers, lost revenue, dramatically higher default costs and less liquid assets.

If you believe that you can save money and get the same results with a less expensive AVM look closer.

Greater precision = lower default cost on the loans you originate.
Greater precision = more loans processed without unnecessary upgrades or lost deals.

Recent Neighborhood Sales Defined

HVE Reports a list of recent neighborhood sales within a 1-mile radius of subject property sold within the last year. Up to 10 properties can be listed, however, the number will vary based on sales activity.

Confidence Scores Defined

In addition to the estimated value of a property, HVE reports provide a Confidence Score and a Forcast Standard Deviation (FSD). Confidence Scores and FSD indicate the accuracy of the estimated value when the target price is not known in advance.

Freddie Mac had conducted research around the accuracy of the traditional appraisal process when the sale price of the subject property is not known. We leveraged the results of this research and other published data when we constructed HVE Confidence Scores. A high Confidence Score represents a value estimate that is at least as accurate as a typical refinance appraisal. A medium Confidence Score is returned for values as accurate as a refinance appraisal to somewhat less accurate. Low scores represent values that are less accurate than a typical appraisal. If a standard deviation is exceedingly high, indicating the data appears to be inconsistent or neighborhood property values vary drastically, HVE will not return a value