Loss Severity Analytics

Solution

Automated valuation models (AVMs) have come a long way since they were first introduced in the 1990s. Today they offer an accurate, instant, and cost-effective method for collateral valuations. Yet, as intelligent as they are, no single AVM is ideal for valuing every property. Different AVM engines have inherent strengths and weaknesses, varying hit rates, and data sources that range in volume, reliability, and currency. These differences generate an unavoidable trade-off between highest hit rates and greatest accuracy because pursuing accuracy narrows an AVM’s focus while the quest for higher hit rates can dilute accuracy. Additionally, AVMs require regular data refreshing and validation testing to maintain consistent, dependable accuracy levels and to meet stringent regulatory audit requirements.

To manage these variables, CoreLogic created and honed four proprietary AVMs that can run independently or as part of a sequenced group (cascade). Each of our core AVMs uses a different analytic engine, but all draw from our Industry-leading property and transaction database.

Product Highlights

This database is updated daily and covers:

• More than 10,000 government and proprietary data sources, including listing price information
• 99.7 percent of the U.S. population
• Tax assessor data for more than 3,050 counties
• More than 142 million properties
• More than 500 million historical transactions