Collateral Risk Assessment

Combining the skill of experienced review appraisers with an extensive database of appraisal review performance, Servicelink Valuation Solutions PRO℠ collateral risk assessment system is able to isolate high-risk appraisals to identify over-valuation and protect against loss. This service is available on a single order and bulk basis. PRO℠ is used by originators as a front-end screening tool and by investors to screen whole loan pools to isolate high-risk appraisals.

Here is how it works:
VS experienced, professional review appraisers screen each appraisal onsite (or in-house) for characteristics (Risk Indicators) that, historically, have shown close correlation with inaccurate value estimates. Some of these Risk Indicators include:

  • Unique property attributes, such as undesirable location or zoning, atypical size, or unusual design
  • Below average condition or quality of subject property
  • Negative external influences affecting the subject property, i.e. busy street, commercial buildings, etc.
  • Comparables located outside the subject neighborhood
  • Comparables unlike the subject in quality, design and appeal
  • Comparables with attributes significantly dissimilar to the subject
  • Excessive individual or Net/Gross adjustments

In areas where county record data is available, the collateral risk analyst performs several important data verification procedures. First, the analyst reviews the sales history and property characteristics of the subject property. Second, a list of additional sales from the subject's market area is analyzed to validate the reliability of both the selection and characteristics of the comparables utilized in the appraisal report. A list of additional comparable sales and a location map are provided as part of the PRO℠ report.

Once the PRO℠ analysis is completed, the client receives a comprehensive report with comments, presented in a concise, user-friendly format that greatly simplifies quality control and risk management. PRO℠ results for large pools (Bulk PRO℠) are displayed in a spreadsheet format, making it easy to assess the overall quality of the loan pool under review. PRO℠ results for individual loans (Single Order PRO℠) are delivered in a pdf format via e-mail or fax and are posted on the VS web site for easy tracking and retrieval. Typical turnaround time is less than 4 hours.

Valuation Solutions collateral scoring system for PRO℠ provides the client with an overall collateral risk score from 4 to 0. This risk score represents the probability of the appraised value being significantly overstated.

The Score™ rating for PRO℠:

  4    Lowest Risk
3 Low Risk
2 Moderate Risk
1 High Risk
0 Highest Risk

For more information, please contact Servicelink Valuation Solutions.

To place order click here.