Optimize Portfolio Risk Management Decisions with a Higher-Quality, Valuation Tool
Portfolio Risk Managers need much more than just accurate property values to correctly assess default and loss severity risk. The magnitude of their decisions requires that they also have a validated measure of the quality they can associate with each property value. They explicitly need to know whether they can trust the value. However, most Automated Valuation Models (AVMs) deliver neither the right level of quality nor a measure of confidence that’s required for these critical portfolio review decisions.
CMV-Portfolio™ delivers on both counts and then some.
Higher Quality Valuations
The property values CMV-Portfolio™ delivers are calculated based on input from four submodels. Leveraging more comprehensive sources—taking the best from each submodel—helps CMV-Portfolio™ deliver a higher level of quality than less-sophisticated AVMs. And since the submodels are based on different geographic footprints, CMV-Portfolio™ delivers more widespread coverage across the U.S. further improving valuation quality.
Every CMV-Portfolio™ property value is delivered with a statistically validated confidence score and a Forecast Standard Deviation (FSD) to indicate the specific level of accuracy associated with the value. The FSD is a statistical measure that represents the probability that the CMV-Portfolio™ value falls within a statistical range of the actual market value, measured against a sales price. It’s a “trust metric” that tells you how confident you can be in the value and, more important, in the decisions you make based on the value.
Flexibility & Control
Some valuation decisions are more important than others. Unlike most traditional AVMs, CMV-Portfolio™ provides the flexibility to adjust your required accuracy rate based on your specific application. Accuracy can be “dialed up” by requiring a more stringent hit rate (and vice versa). Having this type of control over hit rate and accuracy allows CMV-Portfolio™ to be deployed for a larger number of valuation applications and generate greater value across the enterprise.
CMV-Portfolio™ delivers high quality property values, but more importantly, it delivers the peace of mind that the accuracy of the values meets your standards and can be trusted. This quality and confidence translates to the ultimate objective—reduced portfolio risk through more accurate and effective portfolio review decisions.