VCI’s methodology in data analytics has been packaged into an easy-to-use, graphically driven tool called ValueScout. The algorithm behind the software has been patented, and nothing on the market today can compare. At a minimum, the software can be customized for use in the following applications:
Valuation Of REO Properties
What is the true value of an REO property? What is the highest bidding price beyond which the investor starts to lose money? Should the property be repaired? If so, to what extent? What is the probability of it being sold? What about the probability of it being rented in the next three months? These are some of the questions ValueScout will help answer. The software takes rental, repair, disposition, and other related information and outputs the best option based on the investor’s financial requirements as defined by ROI, IRR, or NPV.
Mortgage Servicing Decisioning
Delinquent borrowers have multiple options under consideration, including walking out, bringing the loan current and applying for a modification, to name a few. Servicers also have multiple options, including proceeding with foreclosures, urging partial payments, allowing for modifications, offering a short sale or deed-in-lieu of a foreclosure, among others. Given the combination of options available, both to the servicer and the borrower, there is one combination that best meets the needs of both parties. ValueScout computes the optimal solution based on a set of business conditions, including the servicer’s financial requirements, such as the return on investment (ROI), internal rate of return (IRR), or net present value (NPV).
ValueScout has been used to predict the probability of payment defaults. Its accuracy has been validated using a blind test. The model was integrated with underwriting processes to ensure that the degree of scrutiny is commensurate with the degree of credit risk the borrower was assumed to possess.