CoreLogic, Australia’s leading real estate data and analysis company, said it saw a 23% increase in ordered appraisals in the 12 months leading up to June 2021, with the sharp rise in ratings partly attributed to its products to reduce mortgage processing times and improve the customer experience.
To help banks, lenders and brokers manage the increased demand for appraisals from homeowners and homebuyers, the real estate analysis of more than 10 million homes dating from four decades is used to transforming the country’s lending and appraisal landscape.
Tim Jenner, Director of CoreLogic – Product, Data and Analytics says a series of innovations has resulted in a transformational impact on the industry.
“Appraisal is a critical catalyst in the home buying process. Using real estate data, analytical techniques, and digital workflow tools, we’ve removed several manual steps from the process and helped lenders and brokers dramatically reduce ‘yes-time’ for their clients, even in the midst of these record volumes, ”he said.
CoreLogic’s digital mortgage origination solutions are designed to dramatically reduce bottlenecks in the origination process by helping to ensure that the property is suitable for the borrower and is acceptable security for the lender, quickly. .
Mr. Jenner said, “We use a combination of artificial intelligence and machine learning analysis techniques, cloud-based SaaS platforms, and advanced real-time business intelligence to determine if a mortgage can be underwritten on a property, with an immediate decision, or if data a motorized human appraisal 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 improvement in lender and broker outcomes by automating the flow of critical data points. necessary to make an informed loan decision. in real time. Plus, homebuyers have superior experience with initial certainty or transparent next steps in their mortgage application process, ”Jenner said.
Figures from CoreLogic show that digital assessments using its Automated Assessment Model (AVM) and desktop assessments are used in almost half of all assessment requests by banks and lenders, and in some cases up to 80% by the main digital savvy financial institutions.
Mr Jenner said, “The percentage of these digital alternatives to the overall assessment makeup is growing at a rapid rate, thanks to better profiling of up-front property risks, improvements in data coverage and reporting capabilities. machine learning analysis, as well as improved data and technology now available to the Evaluator Fleet.
AVMs are processed instantly while desktop assessments can take a few hours. Both processes are significantly faster compared to on-site assessments, which can take three to four days on average.
These integrated digital valuation products are designed to simplify operational efficiency by reducing mortgage processing times from days to hours, and in some cases even minutes.
Large financial institutions such as the National Australia Bank, newer lenders such as 86,400 as well as non-bank lenders such as Athena have integrated CoreLogic’s valuation solutions and real estate data into their operations, helping more than one million Australian buyers and homeowners in the past year alone.
Andy Kerr, Director of NAB, Property Owner said, “We know that the confidence that comes with making quick decisions is key to reducing stress and helping our clients get their dream home in the competitive housing market. We strive to make 60 minute unconditional approvals the norm. “
Milena Malev, Managing Director of Financial Services and Insurance Solutions, CoreLogic Asia-Pacific, says that by effectively leveraging real estate information and data, financial institutions have been able to better support their clients’ journey to homeownership, from purchase and beyond.
She says consumers crave speed and efficiency and increasingly expect a level of digitization in the mortgage process to reflect everyday online experiences.
“Across the market as a whole, we are currently seeing a significant increase in refinancing volumes, for example,” Ms. Malev said.
“Coping with this volume is a fundamental challenge for large lenders, as their legacy systems can limit their ability to easily consume the necessary data. Additionally, 60% or more of mortgage volume tends to come from brokers, so lenders juggle broker expectations while adjusting to changing consumer needs. ”
Melissa Christy, Loan Manager at 86,400, said the 86,400 goal was to speed up the approval process and achieved this by integrating CoreLogic’s digital solution into their home loan process.
“By integrating the CoreLogic solution, we were able to significantly streamline the approval processes through their functionality, including allowing brokers to order reviews in advance, integrating with our original system. and our decision rules, and by managing our evaluation panel.
Ms. Malev explains that access to CoreLogic’s comprehensive property data is designed to provide a 360-degree view of individual properties and help personalize each customer’s experience.
“One of the most frustrating aspects of applying for a loan can be the amount of paperwork that takes time,” she says.
“But by using digitized forms pre-filled with key information about the client’s financial situation and enriched with data on the chosen property that the client can simply validate, this administrative burden can be significantly reduced. “
Ms. Christy accepted. “CoreLogic’s rental AVM solution has been essential in enabling us to remove supporting documents from our home loan application process. This allows us to digitally verify that the rental data provided by the client or broker is correct without the need for a rental agreement or letter from a real estate agent, ”she said.
This combination of innovative technologies and rich data helps lenders provide clients with instant appraisal decisions on their mortgage applications, allowing buyers to speed up their real estate transactions.
But Malev says CoreLogic’s offering goes beyond facilitating new mortgage, reloading or refinancing applications faster.
“It’s also about maintaining contact with the customer,” says Malev.
“We can help lenders and brokers build and maintain client relationships by understanding whether they are listing property for sale or renting, and help lenders expand the relationship or help clients secure financing for their next one.” purchase or determine the equity held in their home. “
To learn more about CoreLogic’s digital mortgage solutions, visit www.corelogic.com.au/industries/banking-and-lending.