Our Analysis of 18K Home Equity Loans Across 20 Lenders

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Key Takeaways

Our Analysis of 18K Home Equity Loans Across 20 Lenders

We examined the home equity valuation products used for 18,000 loans originated by 20 of our lenders. We analyzed the data to compare their use of AVMs, hybrid valuations, drive-by appraisals, and full appraisals.

Our team spent dozens of hours reviewing the data to understand how our lenders utilize different valuation methods. We hope these insights help you better understand the market trends.

Valuation Analysis

We saw significant variation in the valuation products being used by different home equity lenders, likely driven by different risk profiles and geographic footprints. While some are using AVMs to value the majority of their loans, others continue to use appraisals as their primary valuation product.

Products

Automated Valuation Model combined with a Property Condition Report
Product that is compliant with interagency guidelines combining interior or exterior property inspection conducted by an inspector with a value conclusion produced by a highly trained analyst
USPAP-compliant product combining interior or exterior property inspection conducted by an inspector with a value conclusion produced by an appraiser
USPAP-compliant property valuation produced by a licensed appraiser, including an exterior inspection only and market analysis
USPAP-compliant property valuation produced by a licensed appraiser, including a detailed interior and exterior inspection and market analysis

1. What % of loans were valued using the following products?

2. For each of the 20 lenders, what % of their loans are valued using an AVM?

3. Across the 20 lenders, what % of loans are valued using a Hybrid?
(appraiser or non)

4. Across the 20 lenders, what % of loans are valued using an appraisal?
(full or drive by)

5. What % of lenders are using hybrid products to value some portion of their loans?

Conclusion

We hope this analysis of your fellow lenders helped you better understand industry trends. Depending on the home equity valuation products you are using currently, you may have an opportunity to save time and money by incorporating more AVMs or hybrid products into your lending.

If you want to learn more about how these valuation products can help, including a free analysis of how your data compares to our current lender customers, please contact us.

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“Non-appraiser-valued hybrids are definitely faster and cheaper than the appraisals. And in the last two years, because of the volume, we needed better turn-times.”

Debbie Pauza, MAI
SVP / Chief Appraiser

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