GENERATION OF AVM AND COLLATERAL RISK INDICATOR RULE SET

摘要

An automated system is presented to create sequence of rules for submission of loan data to automated valuation models (or AVMs) and collateral risk indicators (CRIs). The present invention combines CRI analysis with a program to simulate, within specific geographical locations and at multiple price tiers, possible combinations of three factors: AVM order, confidence score limit, and AVM-to- estimated value ratio. Data are run through each combination to find those combinations that produce an acceptable hit rate and accuracy while meeting the risk requirements of the lender. This results in a rule set that includes sequence rules that contain the proper sequence for AVM and CRI requests for that property and qualification rules that define confidence score cutoffs and acceptable AVM-to-estimated value ratios. Figure 1 is the exemplary drawing for the claimed invention.