New Product Insures Automated Value Assessments.(Brief Article)

Integrated Loan Services here has introduced a product that provides lenders with insurance on the automated valuation estimates they use to close home equity loans.

Called ACA ValueGuard (for automated collateral assessment), the product protects lenders from any loss that results from an overstated value.

ILS President Lee Howlett said the product gives lenders a guaranteed property value delivered in less than 10 seconds that is backed by an insurance policy of up to $100,000.

He said the company's automated collateral assessments "achieve a 95% accuracy rate," and he expects the coverage will give home equity lenders more confidence to use the company's AVM on a greater variety of loans, including 100% LTV and jumbo mortgages. Previously, there had been some trepidation among lenders about using automated valuation models for some types of loans, he said.

"In fact, the ACA product with ValueGuard insurance provides more of a guarantee than any full appraisal performed by a certified appraiser can offer," he said.

The product reflects an ILS goal of automating its products to make them more effective for lenders.

"We are always looking for ways to provide more streamlined processes," he said. "It goes toward speeding it up and lowering the cost for our clients."