CoreLogic RP Data, who owns ValEx, has responded to recent criticism by industry associations and brokers towards its valuation platform.
CoreLogic RP Data General Manager of Operations Michael Hooper says that while they do acknowledge that valuations do not always meet the needs or interests of all stakeholders, there is “no underlying systemic issue” with its valuation platform.
Earlier this week, the FBAA
called for APRA to investigate how mortgage valuations are calculated after brokers reported huge variations in valuations for the same property. However, according to aggregate data derived from ValEx’s valuation platforms, Hooper says those claims are unfounded.
“When we compare Assessed Market Value versus Contract of Sale we can report that 90% of residential valuations come within + / - 10%. When we compare Assessed Market Value versus Owners Estimated Market Value we can report that 69% of residential valuations come within + / - 10%,” he said.
“When we compare Assessed Market Value to Owners Estimated Market Value and compare to Valuation variances, we can report Valuation firm assessments are within 1% of each other. In other words, there are no significant variations between Valuation firms.”
When it comes to valuation disputes, Hooper says only 2.4% of the 90,000 valuations requests received per month receive queries from brokers or lenders. Of this 2.4%, only 26% are altered in value – which is less than 1% in total volume.
Hooper has also responded to misconceptions of the role ValEx plays in the valuation process, saying it is “disappointing” to see industry bodies not properly informing themselves before making inaccurate statements.
“ValEx does not undertake valuations, nor does it interfere with valuation outcome,” Hooper said.
“ValEx is a workflow system that enables end to end management of the valuation process. [It] is a conduit for valuation instructions through to Panel Firms and valuation reports back through to clients. [It] is not responsible for the content of either the client’s instructions or the Panel Valuer’s valuation reports.”
However, Hooper says it does provide comprehensive reporting back to each Panel Firm, broken down by individual Valuer, to assist them to manage their own valuation practice and risk.