Digital valuations ordered have risen by more than 33% since 2019, with desktop valuation volumes nearly doubling from 12% to 21% and automated valuation model (AVM) usage hitting a record 28% of all valuations, according to CoreLogic.
Tim Jenner (pictured above), CoreLogic’s executive of product, data, and analytics, said a succession of innovations after the pandemic have revolutionised the industry, with nearly half of all valuations processed through the data and analytics company now digital, with some online lenders well over 80%.
“COVID provided the catalyst for innovative change after in-person activity was greatly reduced at a time when a record number of mortgages required the timely processing of valuations,” Jenner said.
“Beyond serviceability, there are two critical enablers in the mortgage origination process; one is an accurate valuation of a property and the second is time. Fast, accurate, digital solutions that significantly reduce bottlenecks while ensuring the property is suitable for the borrower and provides an acceptable level of security for the lender has been a gamechanger for the industry.”
Leveraging property data, analytical techniques, and digital workflow tools scrapped a number of manual steps from the process, allowing lenders and brokers to radically shrink the “time to yes” for their customers, the CoreLogic exec said.
CoreLogic figures identified refinance loans as the leading reason for valuation requests, accounting for 76% of all valuations – a figure that has steadily increased each year since 2020.
Constant product innovations in tie-up with industry leaders has further boosted the data and processing speed.
This included CoreLogic’s partnership with valuation firm Opteon that developed SMARTval. The data-driven solution delivers accurate digital valuations in as little as one business day, without the need for physical inspections.
NAB and AMP Bank both upgraded their operations by integrating CoreLogic’s valuation solutions and property data, to drive the digitisation and automation transition and improve the mortgage origination experience.
Andy Kerr, NAB’s executive of homeownership, said a fast decision was critical for customers looking for a home loan or to refinance, to provide them certainty and confidence as well as to help get their loan sorted and get them into their new home.
“Through our partnership with CoreLogic, NAB has been able to achieve faster turnaround times and simpler home loan approval processes and, since we introduced SMARTval a few months ago we’ve seen even more positive outcomes for our customers,” Kerr said.
“We were the first major lender to leverage SMARTval, which has helped slash timelines for valuations while meeting all the stringent conditions required to achieve settlement. Innovation like this is key to continually improving and simplifying our product offering, our approval times for customers and our experience for brokers and our colleagues.”
Melissa Christy, AMP Bank’s head of lending operations and client assist, said the bank continues to embed a digital-first service experience and using the right technology to support its brokers and deliver outcomes for its customers.
Optimising AMP Bank’s digital valuation mix saw its average valuation fee reduced by -35%, and its average turnaround time across all valuation types slashed by -40% in the past three years.
“AMP Bank has unlocked faster turnaround times through its partnership with CoreLogic, with new types of digital valuations helping to enhance the process and improve the experience for brokers and customers,” Christy said. “Over 60% of AMP Bank’s valuations this year were completed via AVM or Desktop while adhering to a controlled risk mitigation framework.
“As a result, we’re seeing some customers receive a response on their valuation almost instantly with AVM, and it’s becoming increasingly common for Desktops to be turned around within an hour. ‘Time to yes’ is a measure brokers and customers count on, and one we’re committed to making as quick as possible.”
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