Stewart Mortgage Information Announces Warranty of Accuracy for Valuation Products
February 27, 2004
Stewart Mortgage Information (SMI) unveiled a national solution for lenders ordering automated valuation products (AVM), broker price opinions (BPO), "drive-by" appraisals and full Uniform Residential Appraisal Reports (URAR) with a Warranty of Accuracy, through its new product named SAVE, or Stewart Assured Valuation Estimate.
The SAVE product allows a lender to purchase warranty coverage for an AVM or appraisal product ordered via SMI. SMI's proprietary ValuLogix(TM) platform allows a lender to utilize various AVM models based on certain loan and underwriting criteria. If the selected AVM does not meet the value or other criteria of the customer, customers can then step up to a BPO, drive-by or full URAR.
SAVE protects a lender against loss by warranting the accuracy of the property valuation as of the date of the AVM or other appraisal product and is transferable to a lender's successors or assigns.
"The SAVE product provides an even greater incentive for lenders to save money by utilizing AVMs and other alternative appraisal products," said Kevin Gugenheim, SMI president and chief operating officer. "Lenders can now obtain a much more cost-effective appraisal product without taking on the risk of loss in a foreclosure due to inaccurate valuations."
The SAVE product is available for both first and second lien mortgages originations and it can be used on all transaction types such as purchase, rate/term and cash-out refinances. Property types covered include owner- occupied one-to-four-family properties, single unit second homes, and one-to- four-family investment properties within the United States. Lenders have the ability to choose the level of coverage for the warranty based on their risk tolerance or compliance guidelines, with coverage limits ranging from $50,000 to $250,000.
Source: Stewart Mortgage Information (SMI)