In the high-stakes world of mortgage aggregation and securitization, confidence is your most valuable asset. Whether you’re acquiring a portfolio of loans or preparing for a Residential Mortgage-Backed Securities (RMBS) issuance, the integrity of the underlying collateral is paramount. The market is showing renewed signs of life, and with it, renewed scrutiny. The positive momentum from 2024 is expected to continue into 2025. Morningstar DBRS projects total RMBS 2.0 issuance will increase again, driven by sustained issuance in the non-QM, prime, and home equity sectors.
A single, unsupported appraisal is a risk. Widespread valuation issues across a portfolio can be highly negative. This is why a secondary valuation isn’t just best practice, it’s a core requirement from rating agencies like KBRA and Fitch.
KBRA, for instance, has a clear standard: a valuation is generally considered supported only if a secondary valuation is not less than the original value by more than 10%. Anything beyond that threshold requires further justification. Fitch similarly reviews an aggregator’s entire approach to appraisal reviews as a key part of its assessment. Your ability to demonstrate a rigorous, independent, and scalable valuation check is directly tied to the success and rating of your security.
Building Confidence at Scale with ValREVIEW Value
When evaluating thousands of loans, you need more than just data, you need intelligent analysis. A simple automated valuation model (AVM) pull may not be enough to satisfy rating agencies or give you true peace of mind. You need a solution that can systemically check valuation quality and provide defensible, expert-driven insights.
ValREVIEW Value is engineered for the capital markets.
- Satisfy Rating Agency Requirements: Valligent’s desk review process is designed to provide the transparent, third-party validation required by rating agencies. Valligent delivers the detailed analysis needed to confirm that the loan to values (LTVs) across your portfolio are supported, which is a critical pillar for any successful RMBS transaction.
- Identify Systemic Risk: Our scalable solution allows for a forensic review of a statistically significant sample or the entirety of a portfolio. Valligent’s Appraisal Quality Score (AQS) provides an instant risk assessment, allowing you to quickly identify and address pockets of potential over-valuation risk that could impact portfolio performance and credit ratings.
- Drive a Smoother Securitization: By providing consistent, data-driven results, Valligent helps you build a stronger case for your deal. Vallgient’s hybrid methodology, combining proprietary analytics with manual review by a certified appraiser, delivers the credible support you need for a more accurate risk assessment and a seamless securitization process.
Don’t leave the integrity of your portfolio to chance. Build your next deal on a foundation of verified, defensible collateral values.
Ready to reinforce the integrity of your next portfolio or RMBS issuance? Contact Valligent to learn more about ValREVIEW Value.
