SAN FRANCISCO--(BUSINESS WIRE)--HouseCanary Inc., the leading modern analytics company for real estate professionals, today announced credit rating agency, Fitch Ratings, named the company among the top automated valuation model (AVM) providers in the country. The new ranking from Fitch provides insight into the growing use and robust accuracy of AVMs in the real estate and mortgage economies.
Residential Mortgage Backed Securities (RMBS) depend on AVMs to provide further due diligence on the value of real estate where a full appraisal is already present. HouseCanary completed Fitch's AVM vendor review and was deemed as acceptable for Fitch-rated RMBS transactions. This development provides additional investor confidence in HouseCanary’s real estate valuation for risk management programs.
AVMs allow for performing real estate loans to be confidently and quickly traded at any time, keeping the capital markets liquid. Comparably, alternative valuation methods such as Broker Price Opinions take longer to complete and cost more, adding additional time and slowing down the entire process of selling homes, loans or bonds associated with real estate transactions.
The Fitch announcement not only benefits the first mortgage and refinance markets, but is also applicable to home equity lines of credit; AVMs provide instant, tradable valuations, providing additional liquidity into the HELOC market.
“We are pleased to be recognized by Fitch Ratings for the accuracy of our AVM technology,” said Jeremy Sicklick, HouseCanary’s founder and CEO. “HouseCanary believes the Fitch announcement is a step toward our vision of a technology-driven instant lending market. With lenders able to originate a HELOC instantly off of a modern AVM and securitize assets directly to the bond market, it will create a transparent, instant, and positive consumer experience. This will help move consumers towards home equity products and away from more expensive, unsecured debt alternatives.”
“The recent Fitch announcement is yet another market indicator that AVMs have a critical role to play within the institutional real estate markets,” said Alex Villacorta, HouseCanary’s EVP for Data and Analytics. “AVMs have been around for the last three decades, but it is only recently that market participants have had the ability to surgically measure the accuracy and suitability of AVMs to match the risk tolerance of the myriad of the collateral valuation use cases. In this way, the industry can responsibly apply AVMs and maximize the speed and cost benefits for a large swath of current valuation cases.”
For a link to the Fitch Ratings press release, please visit: https://www.fitchratings.com/site/pr/10091038
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Founded in 2013, HouseCanary is a real estate technology company providing the most accurate home valuations to drive smarter decisions across the real estate ecosystem. Clients include leading institutional investors and lenders who trust HouseCanary’s products to fuel acquisition, portfolio management, underwriting, and other processes. HouseCanary can be found at www.housecanary.com.