Physical valuations are becoming less prevalent throughout the industry. Image – Canva.
  • CoreLogic says the increase in their products is due to drastic reduction in processing times
  • AI and cloud-based SaaS platforms are used to deliver quick valuation
  • Onsite valuations can often take several days

There was a 23% increase in valuations ordered for CoreLogic in the 12 months to June 2021 new data has revealed.

CoreLogic has partly attributed the sharp rise to their product offerings that slash mortgage processing times.

Tim Jenner, CoreLogic’s Executive – Product, Data and Analytics, said that by using property data, analytical techniques and digital workflow tools, several manual steps have been removed from the process allowing for lenders and brokers to radically reduce the ‘time to yes’ for customers.

“We use a combination of Artificial Intelligence and Machine Learning analytic techniques, cloud-based SaaS platforms, and advanced real-time business intelligence to determine whether a mortgage can be written on a property, with an immediate decision, or whether data-powered human valuation is required,” explained Mr Jenner.

“We have seen a significant improvement in lender and broker outcomes by automating the flow of critical data points required to make an informed lending decision in real time.

Tim Jenner, CoreLogic

“In addition, homebuyers have a superior experience with upfront certainty or transparent next steps on their mortgage application process.”

Data from CoreLogic shows that digital valuations using automated valuation models (AVM) and desktop valuations are currently being used in close to half of valuation requests by banks and lenders. For some digital-savvy financial institutions, this figure increases closer to 80%.

“The percentage of these digital alternatives to the overall make up of valuations is increasing at a rapid rate, enabled through better upfront risk profiling of the property, improvements in data coverage and machine learning analytical capabilities, as well as improved data and technology that is now available to the fleet of valuers.”

AVMs are processed instantaneously while, by comparison, desktop valuations can take a few hours. Nonetheless, both processes are faster than onsite valuations which can take three to four days on average to complete.

NAB Executive of Home Ownership, Andy Kerr, said NAB is now focused on making 60-minute unconditional approvals the norm.

“We know the confidence provided by fast decisions is critical in reducing stress and supporting our customers get their dream home in the competitive housing market,” said Mr Kerr.

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