The article from HousingWire discusses Black Knight’s latest addition to Fannie Mae’s “New Valuation Options List.” Black Knight’s Valuations Scout product, which leverages advanced Machine Learning (ML) technology, aims to provide more accurate collateral valuations in a shorter amount of time. With Valuations Scout, lenders and servicers can determine the value of residential real estate without relying on appraisal-like processes. Black Knight’s technology combines a variety of public and private data sources, including Home Price Index (HPI) data, public records, appraisals, and listings, to create property valuations that meet ANSI 2020 standards.

Black Knight’s Valuations Scout will provide significantly more accurate valuations without the need for borrower interviews or an onsite appraisal. The lender or servicer will enter address-level information such as year built, square footage, and number of bedrooms into the Valuations Scout platform, and the system will analyze millions of comparable properties to generate a report with a value, price range, and “confidence level.” The confidence level indicates the quality of the result, with higher numbers representing more reliable results. Black Knight believes that Valuations Scout can help “reduce customer touchpoints and improve the quality of customer experience.”

Since Fannie Mae is a large loan purchaser, acceptance of Black Knight’s Valuations Scout product is a boon for the company and will likely drive widespread adoption of its technology. With the deployment of Valuations Scout, lenders and servicers will have access to a faster and more accurate valuations process that eliminates the need for in-person appraisals and reduces the customer touchpoints required to close a loan. Weight and confidence of Valuations Scout’s results are also in line with 2020 ANSI standards, ensuring a more accurate and reliable data-driven valuation process.

In short, Black Knight’s new Valuations Scout product provides accurate and reliable real estate appraisals in a fraction of the time required for traditional appraisal-like processes. This technology will reduce customer touchpoints and is expected to be widely adopted by lenders and servicers. The confidence level of the results also meets 2020 ANSI standards, making Valuations Scout an ideal tool for valuing residential properties.

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