Financial institutions are struggling mightily to value their residential real estate portfolios now that prior models have proven inaccurate. With their standard models out of commission, organizations are left with insufficient foresight to predict growing risk and have therefore understated risk premiums. Prior models have proven problematic in a number of ways including lack of dynamic adaption, insufficient data and analytics producing unreliable results, over reliance on appraisal market comparisons, lack of behavioral economics, failure to connect micro-economic borrower profiles to macro-economic market conditions, solely historical perspectives, and inadequate model stressing and simulation of alternative scenarios. 

A more sophisticated valuation approach is necessary—and that's where KUITY's Residential Property Valuation software solutions come in. KUITY goes beyond static ool analysis to determine the “commodity” value of a property, which conveys the real value at risk through the use of an optimized combination of microeconomic and macroeconomic inputs. Risk factors such as income, jobs, industry concentrations, etc., are coupled with real time property inventory (not sales) data to evaluate potential default risks now and simulate possible future scenarios. This unique approach to analyzed data ensures that even thinly traded markets can be accurately assessed during rapidly changing markets. Operating in an automated environment, KUITY's Residential Property Valuation solutions enable timely and accurate valuations on pools of assets being held and/or awaiting purchase. Firms with better valuation models will reap rewards as they will be able to buy assets at the right price and sell or modify mortgage assets at the right time for the right price.

KUITY's Residential Property Valuation solutions go beyond static pool analysis to:

• Determine the commodity value of a property, understanding the real value at risk.
• Include additional risk factors such as income, jobs, industry concentrations, etc.
• Capture in near-real time current ZIP+4 property inventory (not sales) data in thinly traded markets
• Evaluate potential default risks now and simulate possible future scenarios.
• Enable quick and accurate valuations on pools of assets being held and/or purchased

Contact us to learn more.

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