MCS Offering Property Condition Report to Support Interagency Guidelines’ Call for Supplemental Verification with AVMsService addresses key regulatory need, lenders’ urgency to institute new policy quickly
TAMPA, Fla., May 04, 2011 - Mortgage Contracting Services LLC (MCS), a nationwide provider of property preservation, inspections and REO property maintenance, announced that it has been supporting clients with its Property Condition Report, which provides a cost-effective verification of physical property condition to supplement automated valuation models (AVMs).
The newly mandated Interagency Appraisal and Evaluation Guidelines require that lenders must now report on the property's actual condition when using an AVM. Put into effect April 1st, the guidelines outline that a property's physical condition and other factors, such as market conditions, be weighted into any real estate appraisal and evaluation transaction. MCS' Property Condition Report provides a current assessment of the actual physical condition to supplement traditional valuations with an enhanced perspective on a given property's state and risk.
Caroline Reaves, CEO of Mortgage Contracting Services, said, "When guideline changes were announced last December, we recognized an opportunity to help the industry fulfill a need." Using that foresight, MCS quickly developed a product that would aid lenders in meeting the requirements and has been providing the service to clients since the beginning of the year. To date, the company has successfully completed thousands of these inspections for their clients. Reaves added, "Thorough, more accurate valuations are so critical in the current real estate market. Lenders need a true understanding of their portfolio to appropriately prioritize the valuation and management of those assets, and incorporating a verification of physical property into valuations is certainly a step in the right direction."
MCS' Property Condition Report provides a third-party independent review, meaning that the physical evaluation is completed by someone other than the individual that orders, performs or even reviews the valuation. Working with MCS allows valuation companies, servicers and originators to add an additional layer of intelligence to their product, while at the same time maintaining compliance with the new guidelines. And when compared to other solutions completed by real estate agents, MCS' Property Condition Report offers a more economical way to meet the requirements because of the company's ability to capitalize on the economies of scale available through its default inspection services and technology platform, MCS360.
Servicers are also using the Property Condition Report to support valuations associated with loss mitigation efforts, such as modifications and short sales. This affordable product adds another efficient and cost effective way to help verify AVM values used for evaluating loss mitigation options.
"We are proud of our ability to adeptly respond to a changing regulatory environment and provide the industry with services that are relevant to helping them act on those changes," said Reaves. "Our Property Condition Report allows our clients an enhanced product with an immediate assurance of compliance in their processes, as well as the confidence of being backed by the expertise of a leading inspection service provider."