MBAFL_id1425
Auction.com_id[1382]
in News > Residential Mortgage

Jacksonville, Fla.-based Lender Processing Services Inc. (LPS) has released its Home Equity Valuation solution that meets the interagency guideline requirements for both appraisals and evaluations for home equity loans.

The company says the solution incorporates an automated valuation model (AVM), a subject property inspection by a real estate professional and a state-licensed or certified appraiser's independent desktop appraisal for a valuation.

In support of recent advisories from the Office of the Comptroller of the Currency to urge banks to strengthen their oversight of the home valuation process related to home equity loans, the solution provides a Uniform Standards of Professional Appraisal Practice (USPAP)-compliant appraisal report format that meets these standards, says LPS.

According to the company, the Home Equity Valuation workflow also can be customized to meet client-specific risk management policies. For example, more complex properties, such as those that are high-end, rural, or have a unique design or location, can be upgraded to more traditional drive-by or interior appraisals.

"As the housing market begins to recover and equity returns to homeowners in certain markets, regulatory scrutiny of property valuation tools for home equity lending is also increasing," comments Mark Johnson, president of LPS' LSI division. "As a result, lenders can no longer rely solely on the more conventional AVMs and property condition reports to meet evolving compliance guidelines."


ABA_id[1440]
Register here to receive our Latest Headlines email newsletter
Suggested for you