ICE’s John Holbrook talks about important valuation risk considerations for home equity loans and lines of credit with Valuation Review

When assessing home equity loans and lines of credit (HELOC), there are many valuation solutions lenders rely on, including traditional valuation methods such as full appraisals, drive-by appraisals, or automated valuation models (AVMs) combined with property condition reports (PCRs). However, these approaches must align with certain collateral risk policy requirements, which differ significantly from GSE collateral policies.

John Holbrook, Senior Manager, Product Management, Valuation Analytics, spoke to Valuation Review about important risk management considerations relating to AVM and valuation usage for home equity loans HELOCs.

Read the full Valuation Review article to learn more about how leveraging an AVM early in the process can help the lender set expectations with the borrower regarding the price of the appraisal or how long the appraisal may take to complete.