Freddie Mac's Home Value Calibrator
Home Value Calibrator® (Calibrator) is a quality control tool that measures the risk that an appraisal, or other estimate of a property value, exceeds the actual market value by at least 10 percent. 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.
Calibrator is more efficient than traditional quality control methods, and can help you:
- Match the level of underwriting review to the risk identified.
- Identify potential appraisal 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 between 300 and 900 to indicate the probability of an inflated value that may be used to prioritize workflow.
- Indicates whether the purchase price, estimate of value, or appraisal value might be inflated. Lower scores indicate a higher risk.
- 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 percent likelihood that the original appraisal values were inflated by more than 10 percent. The analysis was based on full field reviews.
Note: Results will vary depending on the collateral methods used during the review.
Home Value Calibrator is licensed through a distributor network. Review a complete list of distributors.
For More Information
Review the Home Value Calibrator fact sheet.