Collateral Valuation Report General Information CVR Uses You can use it for any valuation service except for re-finance and loan origination. Refinance and loan origination are governed by Fannie Mae and Freddie Mac and you need to use their approved forms for that type of appraisal work. Some of the uses that appraisers have told us about: HELOC orders; all desktop appraisals; all services where BPOs are used; all AVM Appraiser Assisted valuations; all BPO certified by an appraiser valuations; legal work, forensic appraisal, review appraisal, collateral valuations for bail bondsmen, estate work, divorces, tax assessment challenges for the tax assessor and for the home owner. If you know of other uses, let us know so we can add them to the list. Report Turn Times The turn time is yours to set. The recommended guideline is to promise 48 hours, but de- liver within 24. If you get the order in the morning, deliver it in the afternoon. How long does it take to complete a CVR report? The time it takes will vary between appraisers and their local factors. However, after com- peting the CompCruncher Education and Training program, most appraisers can complete a CVR report within an hour, sometimes much less. Pricing You set the pricing for this services. Recommended pricing for HELOC collateral valuation is $175. Costs You will be charged $25 for every CVR report you produce. What services/data does the $25 cost cover? Everything! We supply up to 500 sales with 3yr history; location maps, flood maps, Pictometry oblique property images for top, north, south, west and east views; MLS import functionality for over 750 MLS systems; census tract information; 12 month value forecast (optional), identity authentication; report fraud On Document verification service; 5 year report online storage; online appraiser credential storage; the CompCruncher software, all software updates; tech support; customer service, education and training and recertification education as the ana- lytics and software changes. Everything is at your finger tips. All you have to do is appraise. Name of Borrower. The borrower’s name Executive Summary. The Collateral Valu- Property Photo. The subject photo is on is placed at the top for easy and quick ation Report was designed so that the first the front page. This makes it easy to view identification of the report. page presents all the salient information in the property and ensure it’s the correct an executive summary format. property being used for collateral. Date and Source of Photo. The date and source of the photo is indicated to ensure relevancy and reduce fraud. Market Area Graphically Illustrated. The market area is graphically illustrated on a map showing the subject and sur- Appraiser rounding area. Neighborhood Demographics. The stan- dard neighborhood demographic informa- tion typically found on a 1004 is also found on the CVR. Market Trends. The trends for sales and listings for the market area are graphically shown in a chart for easy and better inter- pretation of the activity in the market area. Value Reconciliation. The value ranges in the market area, the indicated value by regression and the range are show in one place for easy reconciliation of the overall values in the market area. Appraiser’s Opinion of Value. The ap- praiser’s opinion of value and the effective date of the value are indicated. 12-Month Value Forecast. Using eco- nomic data the value of the collateral is forecasted for 90,180, 270 and 360 days Report Fraud Prevention. This technology is out. The values are show as well as a trend Appraiser’s Identity Authenticated. The called “On Document Verification”. Encrypted chart for a better understanding of the identity of all CVR Certified appraisers has in the data matrix is all the pertinent information anticipated values in the market and of the authenticated by Appraisal Sentry using about the appraiser and the report. If there is collateral. “out of pocket” credentials. any indication of fraud, the data matrix can be decrypted to reproduce the original report data. This is the same technology used by the postal service to prevent mail fraud. Market Area Graphically Illustrated. Area Location Map. The market area is Enlarged view of the boundaries of market graphically displayed on a location map to Neighborhood Characteristics. The area. Sales and listing within this area are visually illustrate the location of the sub- neighborhood characteristics indicating used in the performance of the market ject and the market area relative to other location, build-up and growth are shown. analysis. surrounding landmarks. 12-Month Market Activity. Sales and listing activity for the market area is tabu- lated for the last 12 months. 12-Month Market Activity Charts. Sales and listing activity for the last 12 months is graphically displayed for fast, clear under- standing of the market. Market Analysis Results. Important mar- ket factors such as market absorption and months supply of housing in the market are calculated and shown. Listing Price to Sales Price Ratio. This important indicator of market condition is calculated quarterly and its trend charted on the right. 12-Month Neighborhood Value Fore- cast. Using economic data, the value of properties in the market area are forecast- ed over a 12 month period. Regression Analysis. The collateral Scatter Plot. A picture is worth a thou- valuation conclusion is supported by the sand words and in this case the accuracy Regression Metrics. The actual measure regression analytics applied to sales and of the correlation of the actual sales price of accuracy of the regression analysis is listing data. Up to 500 sales with 3 year to the predicted sales price is graphically show in this table along with the indicated sales history may be analyzed during this illustrated. confidence of the appraiser in the metrics. process. Components of Value. Regression can identify the components of a property that contribute to its overall value. The value, its significance and whether the component is acceptable is indicated in this table. Top 10 Sale Comparables. The sales are ranked by an analytical process. The top comparables in the market area to the subject property are shown in the table. Evaluation of Analysis. The appraiser rates the analysis and the goodness of data that went into the analysis process. Collateral Valuation Report Talking Points The CVR Challenge The new Collateral Valuation Report is taking the lending industry by storm. Everyone is starting to get interested in it and wants to know who can provide this report for them. This is your chance to earn some extra income. How much is up to you, but the opportunity is there. So it’s up to you to take advantage of it. Nothing ventured – nothing gained. First Step Print out the Sample CVR report. Print in color if possible Print out the following pages of this Talking Points document. Second Step Select a few credit unions and local banks that you do not do business with. Make an ap- pointment with the chief appraiser and show them the CVR. Talk about the highlights of the CVR report using the following talking points. Tell the chief appraiser that you can provide this report for $175; that it’s perfect for HELOC collateral valuations; and that you want all their HELOC orders. We Want To Hear From You If you get the business, you just discovered a new way to make $150/hour being an ap- praiser because it will take you less than an hour to produce a CVR report. Plus, you just took back a piece of the valuation market that rightfully belongs to appraisers, not BPOs or AVMs. Let us know what happened. Send us your experiences to email@example.com. Spread the Word – Tell Your Friends Tell your appraiser friends around the country about the CVR Challenge. It can earn you some extra income, (maybe even a lot of extra money). Plus it’s a step in the right direction for taking back the market share that BPOs and AVMs took away form appraisers. You’ll help yourself and you’ll help the appraisal industry. Good luck. We’re sure you will be suc- cessful.
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