Freddie Mac's Home Value Calibrator®
Home Value Calibrator® (Calibrator) is a quality control tool that measures the risk that an appraisal, or other submitted value estimate of a property, may exceed the actual market value. It assists in identifying loans for further evaluation and prioritizing workflow. Calibrator combines the precision of an Automated Valuation Model (AVM) with a statistically based scoring model to deliver a score that can help identify loans with potentially inflated collateral valuations.
Print a PDF version of the Home Value Calibrator fact sheet.
Lender Benefits
Calibrator is more efficient than traditional quality control methods, and can:
- Match the level of review to the risk
- Review potential outliers prior to funding
- Prioritize workflow
- Streamline quality control sampling methodology
- Improve assessment of valuation quality by identifying production at channel or branch level
How It Works
- Leverages the AVM combined with a statistical scoring model
- Analyzes several key elements of loan data and property information
- Generates a score that may be used to prioritize workflow
- Indicates whether the purchase price, estimate of value, or appraisal value might be inflated
- Allows you to produce customized monthly aggregated reports to identify trends
Interpreting Calibrator Scores
A Freddie Mac analysis of loans with Calibrator scores below 400 found an approximately 50% likelihood that the original appraisal values were inflated by more than 10%. The analysis was based on full field reviews.
Note: Results will vary depending on the collateral methods used during the review.
Distributors
Home Value Calibrator is licensed through a distributor network. Review a complete list of distributors.