Property valuation has always been a critical component to lending decisions, but the expectations surrounding valuations have changed. Today’s lenders are expected to deliver faster approvals, reduce operational costs, and create a seamless borrower experience. This evolving landscape has led many lenders to re-examine not only how they obtain their property valuations, but also the level of protection those valuations provide.
While AVMs have transformed the way lenders evaluate residential properties, some lending decisions require more than just an estimate. This is where an indemnified AVM solution plays a critical role.
Understanding the difference
An indemnified AVM goes a step further by combining valuation intelligence with indemnification support, helping lenders manage and protect their valuations when needed.
ValueProtect AVM™ brings together the strengths of Teranet and FNF Canada to deliver an indemnified solution for lenders. Combining Teranet’s industry-leading property data technology with FNF Canada’s comprehensive indemnification coverage, ValueProtect AVM helps lenders make valuation decisions with confidence across an expanding range of markets.
While a standard appraisal can suit certain lending scenarios, lenders may want to consider an indemnified AVM when they need to make faster decisions without compromising risk management. This approach is particularly well suited for lower-risk transactions, such as standard mortgage renewals, refinances, HELOCs, or situations with lower loan-to-value (LTV) ratios.
Automating and streamlining these valuations can save time and reduce manual effort, while still providing confidence that the valuations are accurate and reliable.
ValueProtect AVM helps lenders evaluate with confidence
ValueProtect AVM is designed by two industry leaders with decades of combined experience shaping modern valuation solutions. Our solution was designed for mortgage lenders who need reliable property values, quickly and consistently, while mitigating risk and controlling costs.
The Teranet Valuation offers:
- Instant program qualification feedback
- Trusted, best-in-class Teranet AVM derived from authoritative land registry data
- Pass/fail response with a detailed report
- Includes critical property data elements to satisfy regulators in Canada
Our FNF Canada Indemnification provides:
- Coverage up to $2.5M in major markets
- Self-report and only indemnify funded loans
- Industry-leading coverage with continuously expanding zones
Our indemnification coverage includes:
- Property type: single-family, duplex, triplex, and fourplex properties.
- Urbanization: urban, rural, and remote coverage throughout Canada.
As the lending landscape continues to evolve, valuation strategies must advance alongside it. For some transactions, a standard AVM may be the right fit. For others, lenders may determine that the additional confidence provided by an indemnified AVM better aligns with their business operations and their risk mitigation objectives.
Interested in learning how ValueProtect AVM can support your lending workflows? Learn more here on how this solution can help your organization manage risk while maintaining operational efficiency.
