Determining Collateral Value

Loan Amounts up to $500K

• For loan amounts between $10,000 and $500,000, the lender utilizes automated valuation models (AVMs) in the following order of preference
  1. Primary AVM: Clear Capital (AVM1)
     • FSD (Forecast Standard Deviation) must be 20 or less
     • If AVM1 meets these criteria, the valuation is considered successful.
     • If AVM 1 fails, then proceed to step 2
  2. Secondary AVM: Collateral Analytics / ICE (AVM2)
     • FSD must be 20 or less
     • If AVM2 meets these criteria, the valuation is considered successful.
     • If AVM 2 fails, then proceed to step 2
  3. Manual Valuation Review
     • A Collateral Analyst will complete a manual AVM review to determine an appropriate property valuation.
     • If the manual AVM fails due to no property found, or the FSD is over 20, then a full appraisal (ordered by the lender) will be offered to the borrower.
       • Note: The borrower may request a full appraisal even if the manual AVM is successful.

Loan Amounts over $500K

• A full appraisal is required for all loans exceeding $500,000.
• 1004 (Single Family), 1025 (Multi-Family), and 1073 (Condo)
• The appraisal must be ordered by the lender through an approved AMC (Appraisal Management Company)
• Transferred appraisals or any external collateral valuations will not be accepted