CoreLogic, a leading Australian real estate analytics and data processing company, says that in the 12 months to June 2021, commissioned appraisal has increased by 23%, with the sharp rise in ratings partly attributable to its products helping to shorten mortgage processing times and improve service. clients.
To help banks, lenders and brokers cope with soaring demand for appraisals from home owners and homebuyers, real estate analytics are being used on more than 10 million homes built four decades ago to reshape the nation’s lending and appraisal landscape.
Tim Jenner, Head of CoreLogic – Product, Data & Analytics says the series of innovations has had a huge impact on the industry.
“Appraisal is an important factor in the home buying process. By leveraging property data, analytics and digital workflow tools, we have removed several manual steps from the process and helped lenders and brokers drastically reduce the time required for their clients, even at such record high volumes, ”he said.
CoreLogic’s digital mortgage solutions are designed to significantly reduce bottlenecks in the mortgage loan creation process by helping to quickly ensure that the property is suitable for the borrower and is an acceptable guarantee for the lender.
Jenner said: “We use a combination of AI and machine learning analytic techniques, cloud SaaS platforms and advanced real-time business intelligence to determine if real estate mortgages can be issued with an immediate decision or data – powerful human judgment is required …
“As we continue to focus our data strategy on specific use cases, in this case digitizing the mortgage process, we have seen significant improvements in lender and broker performance by automating the flow of critical data points needed to make informed lending decisions. in real time. Plus, homebuyers have a superior experience with prior assurance or transparent follow-up steps in the mortgage application process, ”says Jenner.
CoreLogic’s numbers show that digital assessments using its Automated Assessment Model (AVM) and desktop assessments are used in nearly half of assessment requests from banks and lenders, and in some cases up to 80% by leading digital-savvy financial institutions.
Jenner says, “The share of these digital alternatives in the overall assessment framework is growing rapidly, thanks to better proprietary risk pre-profiling, improved data coverage and analytic capabilities in machine learning, and improved data and technology now available to the valuation fleet.”
AVMs are processed instantly, and desktop evaluations can take hours. Both processes are significantly faster than on-site assessments, which can take three to four days on average.
These integrated digital appraisal products are designed to streamline operational efficiencies by cutting mortgage loan processing times from days to hours, and in some cases even minutes.
Major financial institutions such as National Australia Bank, new lenders such as 86,400, and non-bank lenders such as Athena have integrated CoreLogic valuation solutions and property data into their operations, helping over one million Australian home buyers and homeowners only in the last year.
Andy Kerr, NAB CEO, Home Ownership said, “We know that the confidence provided by fast solutions is critical to reducing stress and supporting our clients in getting their dream home in a competitive housing market. We aim to make 60 minutes unconditional approval the norm. ”
Milena Malev, General Director of CoreLogic Asia Pacific for Financial Services and Insurance Solutions, says that by leveraging property information and data, financial institutions have been better able to support their clients’ home acquisition process, from the moment of purchase and beyond.
Consumers are striving for timeliness and efficiency, she said, and increasingly expect the level of digitization of mortgage lending to reflect the day-to-day online experience.
“For example, we are currently seeing a significant increase in refinancing volumes throughout the market,” said Ms. Malev.
“Coping with this volume is a fundamental challenge for large lenders, as their legacy systems can limit their ability to easily consume the data they need. In addition, 60% or more of the volume of mortgages usually comes from brokers, so lenders juggle brokers’ expectations, keeping up with the changing needs of consumers. ”
Melissa Christie, Head of Lending 86 400, said the 86,400 goal was to speed up the approval process, and achieved this by integrating CoreLogic’s digital solution into the home lending process.
“By integrating the CoreLogic solution, we were able to greatly simplify approval processes through their functionality, including allowing brokers to order assessments in advance, integrate with our source system and decision rules, and manage our rating dashboard.”
Ms Malev says access to CoreLogic’s comprehensive property data is designed to provide a comprehensive view of individual properties and helps to personalize the experience for each client.
“One of the most frustrating aspects of applying for a loan can be the amount of time-consuming paperwork,” she says.
“But with digitized forms pre-filled with key information about the client’s financial position and augmented by data on their chosen property that the client can simply verify, this administrative burden can be significantly reduced.”
Miss Christie agreed. “Renting an AVM from CoreLogic was critical to us as we removed supporting documents from the home loan application process. This allows us to digitally verify that the lease details provided by the client or broker are correct, without the need for a lease or a letter from a real estate agent, ”she said.
This combination of innovative technology and rich data helps lenders instantly make pricing decisions for clients on their mortgage applications, enabling buyers to complete real estate transactions faster.
But Ms Malev says CoreLogic’s proposal goes beyond expediting new mortgage applications, top-ups, or refinancing.
“It’s also about keeping in touch with the client,” says Ms. Malev.
“We can help lenders and brokers build and maintain relationships with clients by understanding whether they are listing properties for sale or rent, and we can help lenders expand relationships or help clients get financing for their next purchase or find out what equity is in their home. … … “
To learn more about CoreLogic digital mortgage solutions, visit www.corelogic.com.au/industries/banking-and-lending…