Partner Article

Home Equity Data will Open up Greater Lending Capabilities for Businesses

~~New property valuation tool increases lending opportunities on unsecured loans

A new, affordable, automated property valuation tool will allow more businesses to access the information they need to make informed lending decisions. Traditionally, AVMs are expensive and for this reason some businesses have previously been unable to manage risk at this level when making lending decisions.

Mark Sisson, Managing Director at 4most Europe explains: “House value is the missing piece of the jigsaw when a credit provider makes a decision on whether, and how much to lend. We’ve found in our trials with major loan companies that in addition to loan application scorecards, equity is a pretty good predictor of risk; from the perspective of inability to pay, rather than unwillingness. What’s interesting is, the house price relative to local mean (for the type of house), was also very predictive of risk for non-homeowners applying for loans as it considers the quality of the property they are renting or residing in; so the opportunity to improve lending decisions on unsecured loans is far greater.”

4Value from 4most Europe covers all 24 million homes in England and Wales and has been developed as a risk tool by risk professionals to allow lenders to adapt their affordability rules, and as a result, reduce risk and increase profits. The tool provides completely impartial predictions which cannot be tampered with by the consumer or lender. 4value can also be adopted by local authorities, estate agents and many other housing professionals such as debt collection agencies, housing associations etc. Model accuracy is consistent with other asset valuation models on the market.

Free trials of the 4Value tool are now available.

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About 4most Europe (www.4-most.co.uk)

4most Europe Ltd is a specialist credit risk analytics consultancy with offices in London and Edinburgh. The company provides a range of products and services across credit risk, fraud and pricing, working with blue chip clients predominantly in the retail banking and mobile sectors. The company offers a flexible, competitive model, either working with clients to manage regulatory change or delivering and implementing business critical solutions.

This was posted in Bdaily's Members' News section by 4most Europe .