Sample of Information on Collateral by qem77651


Sample of Information on Collateral document sample

More Info
									           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

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.

You set the pricing for this services. Recommended pricing for HELOC collateral valuation is

You will be charged $25 for every CVR report you produce.

What services/data does the $25 cost cover?
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-
                                                                                                      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.

                                                                                           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

Let us know what happened. Send us your experiences to

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-

To top