What is a CVR?
CVR stands for Collateral Valuation Report. A Collateral Valuation Report is an innovative, USPAP-compliant valuation product that is completed by a certified appraiser who has local market expertise and is trained to use a powerful application called CompCruncher. This program allows the appraiser to analyze massive amounts of data to arrive at mathematically supported adjustments and valuations. A CVR is a best-of-class valuation solution for attorneys, lenders, and others who need supportable values, efficient turnaround, and cost-conscious pricing.
What can a CVR be used for?
CVRs can be used for any valuation service except for refinance and loan origination. Refinance and loan origination are governed by Fannie Mae and Freddie Mac and their approved forms are required for that type of appraisal work. Appraisers use the CVR for their alternative valuations. Here are some examples to illustrate the many uses of the CVR.
- Bail Bondsmen
- Estate work
- Divorce disputes
- Tax assessment challenges for the tax assessor and/or home owners
- Forensic appraisals
- Legal work
- Pre-listing evaluation
How is a CVR prepared?
A CVR is prepared in the office using a variety of online data sources such as the local MLS, public records, flood data, census data, and aerial pictography. If requested by the client, an exterior drive-by inspection of the subject, or a full interior/exterior inspection can be performed for an additional fee.
How much does it cost?
To introduce this new service to our area we are offering the basic CVR for only $100.00.
For a CVR with an exterior drive-by inspection of the subject the fee is $150.00.
For a CVR with an interior/exterior inspection of the subject the fee is $200.00.
What are the key elements a lender should know about the CVR report?
• Replace AVMs, BPOs and Review with CVR; perfect for portfolio analysis
• USPAP compliant
• CVR turnaround time is usually 24 hours
• Multi-city testing confirms that CVR values come within 2- 8% of standard URAR value
• Complex market and regression analysis creates mathematically supportable values
• Only a licensed and certified appraiser is allowed to create CVR reports
Benefits to the Lender Community
What makes the CVR superior to other reports? Quite simply, it is a better report in every way. A CVR is built on the most robust data, including public record, MLS, sales, listings, flood maps, location maps, aerial imagery, market statistics, graphs, charts and appraiser-driven regression modeling at the neighborhood level. No other report delivers all of the features of a CVR.
Is the CVR appropriate for review work? Yes. CompCruncher is perfectly suited as a lender review tool. It provides support for adjustments to sales; the most appropriate sales; a ranking and scoring of all sales within a market so that you can look at the sales that were used by the appraiser and determine if they were appropriate. You can easily use the CVR to evaluate sales with the most powerful data available to any lender in the market.
For what other valuation services can the CVR be used? Lenders, loan service companies and any business needing a valuation on a property used for collateral purposes should use the CVR:
Lenders providing a Home Equity Line of Credit (HELOC);--. Pre-foreclosure evaluations;--Portfolio and asset review;-- Refinances;-- Risk Mitigation;-- Pre and Post Funding Quality Control;-- Option-ARM Resets;-- Loan Modifications;-- Review Appraisals;-- Lines of Credit;--or anywhere you might use a BPO, AVM, drive-by 2055 or other desktop report, to name just a few!
Call Marco Ruiz at 904-280-0859
To view a sample report click here.