JACKSONVILLE, Fla. – (October 7, 2008) – Lender Processing Services, Inc. (LPS), a leading provider of integrated technology and services to the mortgage industry, today announced the launch of REO Market Analysis, a robust automated valuation model (AVM) and market analysis report that helps mortgage servicers identify default risks and trends in sales of real estate owned (REO) properties in specific geographical areas.
REO Market Analysis combines several types of valuations with detailed local foreclosure, REO and retail sales data to identify and calculate the effects of local foreclosure and REO trends on subject property values. REO Market Analysis also provides a net forecasted REO value, inclusive of estimated foreclosure and REO expenses, carrying costs and timelines. With this data, the REO Market Analysis report delivers multiple valuation estimates, such as fair market AVM value, current REO value and net forecasted REO value, in an easy-to-read format that identifies and calculates the property’s perceived and potential value.
Unlike standard AVMs, REO Market Analysis includes local market historical value trends, home price appreciation forecasts, subject property five-year transaction history, recent area sales, and estimated foreclosure and REO costs and timelines, making it a valuable tool when evaluating potential foreclosure loss risk and helping to formulate loss mitigation strategies.
“REO Market Analysis leverages LPS’ extensive property listing, foreclosure, REO and public record databases to deliver the most accurate forecast of final REO sale value available,” said Dr. Nima Nattagh, senior vice president of Valuation Analytics for LPS Applied Analytics. “Our report gives decision makers the opportunity to make more informed decisions during the servicing cycle of a delinquent mortgage. This tool can offer a baseline for assessing modification or short sale opportunities at a fraction of the cost of a field-based valuation. We developed REO Market Analysis to meet the marketplace need for an inexpensive tool to screen for these opportunities early in the default cycle.”
“REO Market Analysis offers the mortgage servicing industry and secondary market clients a powerful screening and portfolio monitoring tool to pinpoint declining markets and foreclosure risk areas, and help them navigate through the sometimes murky waters of mortgage loan portfolio analysis,” said Jon Davis, managing director of LPS Applied Analytics’ Valuation Solutions group. “In today’s market, it is essential that servicers have the right tools to identify ‘high risk’ properties so they can efficiently focus their collections and loss mitigation efforts.”
About Lender Processing Services
LPS is a leading provider of integrated technology and services to the mortgage industry. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, portfolio retention, risk management and default, augmented by the company's award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages are serviced using LPS' MSP. In fact, many of the nation's top servicers rely on MSP, including seven of the top 10 and 16 of the top 20. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, please visit www.lpsvcs.com.
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