The end of the year often brings an increase in consumer financial activity. With the holiday season, many homeowners are eyeing their home equity – whether it’s to finance festive spending, tackle long-postponed home improvements, or possibly consolidate debt before the new year. For home equity lenders, this can mean a “HELOC Rush,” a golden opportunity to grow your portfolio, but one that demands speed and efficiency to capitalize on.
The challenge? How do you accelerate originations without compromising on risk management or quality? The answer lies in smart, versatile valuation strategies. Here are three ways to help keep your HELOC pipeline moving swiftly and smoothly through the busiest time of the year.
1. Instant Triage: Fast-Track Low-Risk Applications with Professional-Grade AVMs
When applications start pouring in, you need a way to quickly assess collateral and prioritize. This is where a high-performing Automated Valuation Model (AVM) becomes your best friend.
- How it works: Solutions like VeroVALUE AVM provide near-instant property value estimates by leveraging vast databases of property information and advanced algorithms. They’re designed for speed and cost-efficiency.
- Why does it accelerate originations?
- Rapid Qualification: Quickly determines if a home’s value comfortably supports a proposed loan or line of credit, allowing you to fast-track low-risk applicants.
- Cost Savings: Provides reliable valuations at a fraction of the cost of more intensive methods, improving your margins during high-volume periods.
- Accuracy You Can Trust: VeroVALUE consistently outperforms other AVMs in third-party tests for both hit rate and accuracy, and is proven to be unbiased, ensuring objective, data-driven assessments.
- When to use it: Ideal for initial pre-qualification, portfolio reviews, or very low-risk HELOCs where a quick, reliable estimate is sufficient.
2. Rapid & Reliable: Elevate Moderate-Risk Loans with Expert Residential Evaluations
Not every HELOC application is low-risk enough for just an AVM, but many don’t require the time and expense of a full appraisal. For these moderate-risk scenarios, a residential evaluation strikes the perfect balance.
- How it works: Valligent’s eVAL™ solution combines a thorough inspection (in-person or virtually with ValINSPECT Virtual™) performed by a licensed real estate professional with an expert valuation conducted by a highly trained analyst. This provides a human touch and deeper insight than an AVM alone.
- Why does it accelerate originations?
- Fast Turn Times: Our eVALs are often completed within hours or a single business day with virtual property inspections, dramatically outpacing traditional appraisals.
- Regulatory Compliance: eVAL offers an efficient and Interagency Appraisal and Evaluation Guidelines (IAEG) compliant alternative when full appraisals are not required, helping you meet guidelines without delays.
- Data-Driven Risk Management: Provides a comprehensive view of property value by utilizing public records, MLS data, and expert analysis, reducing the risk of over- or undervaluation.
- When to use it: Perfect for moderate-risk HELOCs, streamlined refinancing, or situations where a human expert touch is desired quickly and affordably.
3. Cut the Delays: Streamline Appraiser-Backed Valuations with Bifurcated Appraisals
For HELOCs that require an appraiser’s professional opinion, traditional full appraisals can be a significant bottleneck, especially during busy seasons. Bifurcated appraisals offer a compelling alternative that keeps the appraiser involved but streamlines the process.
- How it works: Valligent’s ValPRAZE™ offers a limited-scope desktop appraisal. A licensed real estate professional performs the thorough inspection (virtually or in-person), and then a state-credentialed appraiser conducts the expert valuation off-site.
- Why does it accelerate originations?
- Speed for Appraisals: ValPRAZE delivers results in as little as two business days, including the inspection. This is a game-changer for appraisals that typically take much longer.
- Cost-Efficient Expertise: By separating the inspection from the appraisal, you save on costs while allowing appraisers to focus on their analytical expertise, enabling them to take on more assignments.
- Flexible Applications: ValPRAZE is specifically designed for cash-out refinances or lines of credit where a full appraisal isn’t strictly necessary but an appraiser’s sign-off is preferred.
- When to use it: When a state-credentialed appraiser’s valuation is needed for a HELOC, but you want to avoid the typical time and cost constraints of a traditional full appraisal.
Don't Let the HELOC Rush Turn into a Bottleneck
This holiday season, be prepared to meet borrower demand head-on. By strategically leveraging a diverse suite of valuation solutions, from instant AVMs to rapid residential evaluations and streamlined bifurcated appraisal, you can accelerate your HELOC originations, enhance borrower satisfaction, and maximize your growth potential.
Ready to optimize your HELOC pipeline? Contact us today.
