Valuation Review Form Helps Lenders Thaw Frozen Credit Lines

December 9, 2008 - Several lenders are allowing their borrowers the opportunity to provide an outside appraisal as part of the process of re-opening a frozen line of credit and to determine the new credit limit. Others are allowing potential borrowers to use outside appraisals in the origination process. Typically, an outside appraisal is acceptable to a lender, if it’s less than three months old.

However, beyond the basic requirement of age, these lenders are concerned that these appraisals meet their underwriting guidelines, quality and content, as well as, for appropriateness and applicability.

That’s where the ELS Valuation Review Form (VRF) answers the call. The VRF is a review process for the quality and content of an appraisal. A simple pass/fail rating is provided along with notes to support this outcome. The notes can be cut and pasted into the lenders system for future reference. Another unique aspect is that an Automated Valuation Model (AVM) is run in an effort to validate the value determined in the appraisal.

The form itself can be customized to meet specific lender guidelines. Several examples include:
- is the property now listed for sale
- subject to completion of new construction
- external detriment, deferred maintenance
- extreme physical depreciation
- proximity of comparables
- identity of a declining market

All of these can be specially-noted on the VRF to help a lender determine whether the outside appraisal can be used as part of an underwriting decision.

What makes the VRF most attractive to lenders who are using it? The use of an AVM to validate the appraisal value and the ability to cut and paste ELS comments to support the pass/fail grade. If you’re interested in learning more about the VRF, please request more information or contact your ELS sales rep.

ELS now resells VP4 Default for REO Properties

November 13, 2008 - First American Equity Loan Services is now reselling First American CoreLogic's ValuePoint4 (VP4) Default AVM. VP4 Default is a specialized AVM that has been specifically “trained” to value REO properties. When applied to REO properties, traditional AVMs will significantly overvalue properties and will not be as accurate as VP4 Default.

By contrast, VP4 Default uses specific discount factors based upon the recent REO sales in close proximity to the subject property. Subsequently, these discount factors are adjusted up or down based upon local neighborhood conditions and dynamics. Unlike a traditional AVM, VP4 Default provides an estimated disposition value, and an estimated disposition value
range.

If you are a home equity lender that has REO properties, you'll be interested in this AVM as a potential subtitute or first option prior to obtaining a value through either a BPO or a drive-by appraisal. It's also ideal for portfolio scrubs.

VP4 Default can be ordered via www.elsonline.net. For more information, please contact your ELS sales rep.

Electronic Signing Streamlines Loan Modification Process

October 29, 2008 - One of the most urgent challenges facing lenders today is processing loan modifications.  Lenders need to act quickly to stabilize mortgage delinquencies, reduce foreclosures, and assist their at-risk borrowers.

Electronic Signing can provide you with a web-based tool to streamline your loan modification process – for your institution and your borrower’s ease and convenience.   Electronic Signing can be as simple as 4 easy steps:

• Lender uploads modification documents to First American ELS
• Secure, encrypted email is sent to borrowers
• Modification  documents are reviewed and approved by the borrower, electronically at any time, day or night
• Lender is notified when documents have been reviewed and signed.  Signed and date-stamped lender copies are available through e-Vault

Electronic Signing can be rapidly deployed in days, not months – and your borrowers can execute their new loan documents in minutes.  Electronic Signing is web-based with no IT resources or expensive software to purchase.  Batch processing is easily accommodated. Click on the Locate My Sales Rep icon to contact us today for a demonstration.

We're eRecording in more than 350 counties

October 20, 2008 - As an industry leader in filing real estate documents in the public record, First American Equity Loan Services is pleased to announce that we have begun eRecording in the following counties:

Suwannee, FL
Ada, ID
Power, ID
St. Charles, MO 
Durham, NC
Guilford, NC
Johnston, NC
Mecklenburg, NC
New Hanover, NC
Wake, NC
Lebanon, PA
Grayson, TX 

We are now eRecording in more than 350 counties in 28 states nationwide. This figure is growing monthly. If you’d like more information about how eRecording can benefit your lending process, please click to locate your sales rep or request product information.
 

First American Equity Loan Services Releases vSure

August 26, 2008 - First American Equity Loan Services announces the release of a re-designed validation analysis package called vSure. vSure will provide a cost-effective and streamlined service to home equity lenders that need to test or qualify their AVM solution.

There are four standard test options that can be used as templates to meet the degree of detail required by the lender. Within each template, there is still opportunity to customize. vSure is supported by a white paper document that defines validation practices.

For more information and to obtain your copy of the vSure white paper, please contact your ELS sales rep.