Many AVM-providers offer light AVMs. Some providers run applications through different models to provide the most-accurate results for the region and neighborhood in which a home is located.

Some mortgage companies also find AVM-lights useful when performing due diligence on loan portfolios. Business rules generally specify that if a report shows a property comes within a certain percentage point of a necessary value -- usually a price that maintains a certain loan-to-value ratio (LTV) -- no other action is necessary.

The estimated values, value ranges and confidence scores typically are returned on a spreadsheet for portfolio reviews. It is possible to extract the results and run them against customer-specific business rules. Full AVMs can help with properties that don't meet the necessary LTV, allowing review of supporting information.

As housing prices continue to fluctuate, they will challenge mortgage brokers who seek to determine accurate valuations in a timely manner. The use of AVMs and light AVMs can help. These valuation models can deliver quick and reliable figures that allow brokers and buyers to move forward in the loan process with increased confidence.

Greg Holmes is national director of sales and marketing at Credit Plus Inc., a leader in credit-information services since 1928. Reach him at beyondbundled@creditplus.com or by calling (800) 258-3488.

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