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3 Due Diligence Concerns from Secondary Market Professionals (and How to Solve Them)

By June 6, 2019 No Comments
Due Diligence Concerns from Secondary Market Professionals

Expanding our conversation after MBA’s 2019 National Secondary Market Conference & Expo

2 min read

Before we left for MBA’s 2019 National Secondary Market Conference & Expo in New York City, we shared some thoughts on reducing the time and cost of due diligence by using property analytics to gain a deeper understanding and select the right valuation product.

At the conference, our CEO and other members of our executive team further discussed with attendees the unique challenges for secondary markets and securitization. Many of the concerns we heard surrounding due diligence on loan collateral can be summarized as:

• Current tools are like blunt instruments, leading to fragmented analysis
• The analysis takes too long
• The need to further mitigate risk

Additionally, when we dove into deeper conversations with attendees, a lot of questions surfaced surrounding how and when to use automated valuation models (AVMs).

Understandably, there is still hesitation when it comes to letting computers produce a valuation. We understand it requires testing to know when an AVM is the right product for a certain situation — and when it is not. We’ve recently released a couple blog posts about AVM testing to explain our view on that process (A Lender’s Guide to the Top 3 AVM Testing Methods and AVM Testing: A Short Glossary).

After years of conversations with customers — many of which happened at conferences — we learned that what they’re looking for is a better understanding of property complexity and valuation suitability at the prequalification phase. So we developed ClearProp, an interactive property analysis tool that provides property value, characteristics, photos, price trends, complexity, listing/sale history, ranked comparables, tax and finance history, and much more.

ClearProp was designed for when you need to dive deep on tricky properties from your desktop, and provides a powerful set of interactive tools and filters. And it has bulk CSV import and export, which is well-suited for enhancing your existing process and enables better management of your product waterfall.

We always learn a lot from our partners at industry events, and it’s one of the many reasons we keep coming back to conferences and engaging with other industry professionals. We’re only halfway through our 2019 conference schedule: Take a peek at where we’ll be next by visiting our upcoming events page. You can easily schedule time to meet with us at upcoming events right from the page. We enjoy hellos!

If you aren’t planning to attend any events this year, we’re still more than happy to answer any questions you have or walk you through a demo at your convenience. Just email us at sales@clearcapital.com.

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