First American Real Estate Solutions Releases Home Price Index
April 7, 2000, ANAHEIM, Calif.
In an increasingly competitive mortgage marketplace, many lenders and brokers are utilizing AVMs to streamline the mortgage approval process and better serve the consumers.
"Our valuation models are particularly beneficial to the mortgage lenders in a number of areas such as borrower prequalification, as a supplement to drive-by and desk top appraisals, quality control as well as portfolio valuation,'' says George Livermore, division president at First American RES.
This new product by First American RES is based on what is commonly known in the industry as a ``repeat sales model.'' The model tracks the resale value of individual single family homes and condominiums which have sold at least twice.
"Increasingly, AVM users have come to realize the importance of the data that feeds the valuation models. First American RES, as a collector and provider of public record real estate data and appraisal information, is in a unique position to ensure that our valuation models enjoy the highest quality data available,'' says Livermore.
Home Price Index has been extensively tested for accuracy against actual appraisal values associated with first and second mortgage originations. Tests conducted by First American RES for some of the largest national lenders shows the model's values are within acceptable range of appraised values.
First American RES, a division of The First American Financial Corporation (NYSE: FAF), collects and compiles real estate information from county recorder, assessor offices and appraisal sources in more than 630 counties nationwide covering 70 percent of real estate activity in the nation. First American RES customers include mortgage lenders, appraisers, real estate brokers, title companies and e-commerce resellers.
The First American Financial Corporation, based in Santa Ana, Calif., is the nation's leading provider of business information and related products and services. The corporation's three primary business segments include: title insurance and services; real estate information and services, which includes mortgage information services and database information services; and consumer information and services, which provides home warranties; automotive, subprime and direct-to-consumer credit reporting; property and casualty insurance; property and automotive insurance tracking services; resident screening; pre-employment screening; investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at www.firstam.com.