The Importance of Property Risk Assessment

With an increased focus on managing risk and the volatility of the real-estate market in recent years, Lenders are trying to better assess and improve risk selection and pricing in their mortgage adjudication process. As a result, property valuation and associated risk factors are playing an increasingly vital role in the overall mortgage origination workflow.

Lenders frequently review their risk exposure through LTV (Loan-to-value) analysis of their portfolio, but this post-financing approach is a rear-view mirror approach, identifying areas of risk within their current portfolio without necessarily providing the intelligence to inform go-forward lending decisions. As a result, many Lenders may continue to take on risky properties.

The 3-C approach (Credit, Capacity, and Collateral) is the most common method of evaluating risk and approving / pricing mortgages at the time of application. All Lenders work hard to leverage the most accurate data across the 3-C’s while balancing customer experience and process efficiencies in the upfront mortgage adjudication process. The intent of these efforts is to improve underwriting decisions and processes to reducing risk and improve profitability while maintaining a positive customer experience.

Improve Collateral Insights and Risk Selection at point of application

As Canada’s most trusted source for location intelligence, DMTI Spatial has helped a number of Lenders better understand the Collateral portion of the Mortgage adjudication process, with real-time data designed to aid in risk determination and scoring. Available in easy-to-use SaaS applications, or utilizing industry standard APIs for easy integration into Mortgage origination systems, we enable fast underwriting decisions and support low-touch / no touch auto adjudication processes.

Review Collateral Risk at a Portfolio Level and over the lifecycle of the mortgage

Various risk factors change over time as well, demographics, environmental risk, crime, and neighborhood gentrification are common factors that can positively or negatively impact property valuation. Our Portfolio+ module supports bulk processing and visualization of your book of record, leverage intuitive tools such as heat maps and filtering to identify particular areas of risk and areas of opportunity to inform future decisions.

Property Risk Portal 

Easy to use, SaaS-based visualization and scorecard application to support Collateral risk assessment and scoring. Portfolio + module supports upload and scoring of entire portfolios for regular stress testing and risk analysis.

Property Risk Scorecard

Industry standard API’s (Application Programming Interfaces) designed to bring real-time scoring directly into Mortgage Origination systems, facilitating real-time automated decisions in both consumer-facing portals, and internal lending systems of record.

For more information, or to arrange for a demonstration, please contact us today.

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