Electronic valuations must be audited, says FBAA

by Julia Corderoy16 Nov 2015
The chief executive of the FBAA has demanded that electronic mortgage valuations be audited.

Speaking at the FBAA’s annual conference in the Gold Coast on Friday, Peter White said electronic valuations will be a key focus for the association in the year ahead.

“Another [issue] we are not letting go of is electronic valuations. We know the issues in the market place – there is probably no one in this room who will turn around and say they have never had a bad valuation off an electronic platform. Various industries are doing things about it and we will continue on that mission,” he said.

The FBAA’s mission, says White, will be to ensure electronic mortgage valuations are audited.

“I want to see the data audited because so far to data no one can say to me that they have actually audited the data that sits on the electronic platforms. That means the outputs are not accurate and that is a problem.”

This isn’t the first time White has flagged concerns in the valuations industry. Last year, he called for APRA to investigate and regulate how mortgage valuations are calculated. According to White, brokers often report huge variations in valuations for the same property, sometimes by hundreds of thousands of dollars.

“This is not good enough. Valuations should reflect the true value of a property and incorrect valuations can in some cases prevent buyers from being able to purchase the home they want,” he said in December.

“It’s time to review the model used for valuation assessments and allow a more effective dispute procedure.”
 

COMMENTS

  • by Regional Broker 16/11/2015 9:10:21 AM

    Good luck. In a rapidly shifting market and an unreported sale or sales taking up to 3 months to reach data bases it is a nightmare.

    Really the whole valuation practice and reporting needs a shake up.

  • by marty 16/11/2015 10:23:32 AM

    On data quality the electronic conveyancing process should also be required feed the sale prices at settlement to the data collectors so we don't get that 3 month lag.