• Single-Family
  • Home Value Suite
  • Home Value Explorer
  • Home Value Calibrator
  • Geographic Coverage
  • Distributor Network

Home Value Explorer

Home Value Explorer (HVE®) is a Freddie Mac Automated Valuation Model (AVM) tool that simplifies the mortgage process by streamlining the collateral valuation cycle. For over 15 years Freddie Mac has effectively employed AVMs internally for its own risk and portfolio management. AVMs have become an integral part of today's mortgage market and AVM technology has advanced the world of automated valuation services from novelty to necessity.

In nationwide tests conducted by large wholesale lenders, HVE consistently performs at the top in the areas of coverage, accuracy, and reliability. HVE actually encompasses several models rolled into a single product, for one low cost. When you use HVE you benefit from Freddie Mac's unique proprietary algorithm that blends multiple model estimates returned by the repeat sales model and the hedonic model. We call this our combining process.

Today, AVMs are efficient, effective, and essential tools for staying competitive. AVMs expedite processes, lower costs, and minimize risk. When choosing an AVM, it's important to consider coverage, vendor reputation, current technology, accuracy, and price. Freddie Mac's dedicated team of modeling experts continues to improve and enhance the HVE tool.

HVE is a tool with many uses:

• Supports many lending functions such as:
  • Second mortgages
  • Home equity loans/home equity lines of credit
  • Loss mitigation
• Supports processes related to purchase, sale, or construction of homes
• Supports processes related to evaluating insurance needs
• Supports Quality Control (QC) processes

Recent Neighborhood Sales Defined

HVE reports provide a list of recent neighborhood sales within a 1-mile radius of a subject property sold within the last year. Up to 10 properties can be listed, however, the number of listings will vary based upon the amount of comparable sales.

Confidence Level and Forecast Standard Deviation

In addition to the estimated value of a property, HVE reports provide a Confidence Level and a Forecast Standard Deviation, which indicate the accuracy of the estimated value.

A high Confidence Level represents a value estimate that is as accurate as a typical refinance appraisal. A medium Confidence Level is returned for values as accurate to somewhat less accurate than a refinance appraisal. Low levels represent values that are less accurate than a typical appraisal. If a standard deviation is exceedingly high, indicating the data appears to be inconsistent or the neighborhood property values vary drastically, HVE will not return a value.

A high Confidence Score represents a value estimate that is as accurate as a typical refinance appraisal. A medium Confidence Score is returned for values as accurate to somewhat less accurate than a refinance appraisal. Low scores represent values that are less accurate than a typical appraisal. If a standard deviation is exceedingly high, indicating the data appears to be inconsistent or the neighborhood property values vary drastically, HVE will not return a value.

To sign up for HVE, contact one of our approved distributors for pricing and/or a product demonstration.