customers the most effective valua- tion solution for any given scenario. A ClearVal appraisal includes an inspection by a local, licensed real estate professional and a desktop valuation by a local, licensed ap- praiser from Clear Capital’s na- tionwide network. Appraisers have access to ClearProp, Clear Capital’s robust property research tool (which includes ClearAVM!) and allows us- ers to view comparable properties side-by-side, analyze home price trends, view MLS photos, read MLS commentary, and more. ClearVal appraisals are packaged in a consumer-friendly PDF report, so everyone — from underwrit- ers to loan officers to first-time borrowers — can easily understand the information. For every alternative valuation solution, financial institutions should be sure their valuations provider understands the impor- tance of compliance. For example, the ClearVal appraisal was designed to meet the compliance standards of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), the Interagency Appraisal and Evaluation Guidelines, and the Uniform Standards of Professional Appraisal Practice (USPAP). And, in addition to automated quality checks, every ClearVal appraisal is reviewed by a highly-trained, U.S.-based analyst, and no work on a ClearVal appraisal is ever out- sourced to another country. In 2019 and beyond, as the indus- try sees an increase in HELOC vol- ume and financial institutions look for even more ways to delight their borrowers, alternative valuation solutions like AVMs and hybrid ap- praisals will offer more flexibility, less costs, and quicker turn times while still delivering on confidence and reliability. Kenon Chen is the Executive Vice President of Strategic Partnerships at Clear Capital.

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inspection expertise. Like all of Clear Capital’s solu- tions, ClearAVM is powered by the company’s continually updating database of information on nearly every U.S. property, including data from public records, the company’s proprietary data, and an ethical- ly-sourced, high-coverage multiple listing service (MLS) data set. It’s true that AVMs are quicker, cheaper, and more readily available than appraisals. But it’s important to note that even the best AVM can only provide an estimate of value based on known factors. AVMs have difficulty considering things that negatively impact value (like messy neighbors or noise pollution) and positively impact value (like kitchen remodels or add-ons). An AVM is not always suitable for lending de- cisions, and not every property can be valued with an AVM. Another important note: AVMs won’t be replacing appraisers anytime soon. In fact, the best AVMs use machine-learning to try and “think” like appraisers — their models are programmed to emulate the way a trained expert would approach a valuation, which

highlights the immense value and necessity of appraisers and the appraisal profession. In addition to AVMs, financial institutions have other, alternative valuation solutions to consider. Hybrid appraisals are designed for medium-risk valuation situations that don’t require a traditional appraisal — including home equity lines of credit (HELOC), loan sale due diligence, and non-qualified mortgages (non-QM) — but call for a more robust solution than an AVM or broker price opinion (BPO). Clear Capital recently announced the next generation of its ClearVal appraisal, a hybrid appraisal that combines a boots-on-the-ground inspection with a local, apprais- er-completed desktop valuation. Financial institutions need a valu- ation solution that takes less time to complete than a traditional apprais- al while also excelling in four areas: dependability, compliance, cost-ef- fectiveness, and nationwide avail- ability. The ClearVal appraisal was designed hand-in-hand with some of the nation’s top lenders to be that solution, and further enhances Clear Capital’s ability to offer its



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march 2019 19 The information contained herein is for informational purposes only and is not a commitment to lend. The programs rates, terms, and conditions are subject to change at any time without notice. Angel Oak Prime Bridge, LLC. Funding solutions to fit your investment. Visit or call 888.209.1333

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