IAS Applies Distressed Methodology to Automated Valuations

Denver, Colorado-based ""Integrated Asset Services, LLC"":http://www.iasreo.com (IAS), a provider of mortgage default management services and residential collateral valuation, has added a ""distressed"" appraisal feature to its iValue suite of automated valuation products.
Industry leaders anticipate an unprecedented volume of distressed properties and fluctuating loan-to-value ratios over the next several quarters as a flood of default and REO properties enter the market. According to IAS, its new product feature is intended to help mortgage servicers around the country more accurately value distressed residential properties and loans associated with such collateral.
Dave McCarthy, president and CEO of Integrated Asset Services, commented, ""Financial institutions and mortgage servicers need a fast and affordable way to review their portfolios and make decisions for each individual loan. The distressed valuation feature is a way to individualize the value of each property according to the state of the local market and the property-specific factors that may negatively impact value.""
IAS' new ""distressed"" feature extends its automated valuation model (AVM) to extract and weigh key data points that indicate whether a property is considered distressed within the iValue model. The enhancement is designed to identify and flag those properties that are in some state of distress, including notice of default, bank-owned, abandoned, and sheriff sale. The company explained that the feature also applies neighborhood analytics to search and select area listings and sales that can be identified as distressed, enabling the AVM to utilize relevant comparables. IAS said its distressed methodology isolates and monitors price trends for distressed properties in a local market, allowing the model to accurately establish the spread between retail market value and distressed value.
Ric Miles, CEO of ""IntelliReal"":http://www.intellireal.com, IAS’s technology partner, added, ""An intelligent AVM is able to recognize a distressed property state, quantify the price pressure on a given market, and value each asset accordingly. Identifying the distressed value of a property within its local market will give servicers and mortgage traders the ability to more proactively strategize and manage portfolio risk.""
iValue is one of several innovations introduced by IAS to help financial institutions mitigate risk. IAS specializes in default mortgage services, including valuation, reconciliation, and full cycle REO disposition. The firm also launched its monthly IAS360 House Price Index last year to provide the industry with a snapshot of rapidly changing property values in local housing markets and nationally.