String:Seeking a partner for appraisal outsourcing

Originators love Automated Valuation Models (AVMs). They have evolved into affordable tools that quickly return a realistic value for many properties around the country. Some offerings include insurance, guaranteeing the lender that the AVM provider will protect them in the event their valuation is incorrect. Others include forecasting tools that project the value of the collateral out into the future.

But as cool as these tools are, they don't work for every property, so lenders fall back on traditional appraisals. Regardless of how the originator gets a value on a property, the firm will want to have a compliance team check it out on the back end. That's been a pain point for lenders in the past. They don't want to let too many loans flow through without an appraisal review, but each time they do it they spend more money to close the deal.

Prashant Kothari wants to change all that. He's the president and founder of String Outsourcing Solutions and he's working with collateral valuation specialist and consultant Vicky Cassens to locate lenders who are finding it difficult to effectively perform adequate appraisal review.

"About 15% of the outstanding loans in the U.S. are collateralized by properties that have been over valued," Kothari said. "We can make it affordable for lenders to avoid predatory appraisals."

Interested? Contact Kothari at ppkothari@stringinfo.com or check out the company website at http://www.stringinfo.com.

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