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68 I N D U S T R Y I N S I G H T / R O N A H L E N S D O R F J R . Data is king, we're told. But data doesn't always tell the whole story—in fact, too much data can make the truth harder to find, and property valuations are a prime example. Today, more than ever, there is an abundance of data available regarding real estate values. Consumers can find literally dozens of different estimates of their home's worth from any number of websites. e type and combination of data elements used to determine home values continues to grow, along with valuation products such as automated valuation models, hybrid appraisals, and broker price opinions. With so much information and so many tools at our disposal, it's no wonder appraisal reconciliation requests are soaring in number. If you're not familiar with the reconciliation process, it's when an individual with real estate valuation expertise reviews and analyzes one or more different valuation conclusions and provides a final opinion of value. e reviewer draws on his/her experience, expertise, and knowledge of the local market to come to a conclusion. At Summit, the volume of requests to review single or multiple valuation reports to understand the true value of a property has risen sharply, as lenders, servicers, and investors try to determine how to make sense of the different numbers they're seeing. It can all be a bit overwhelming, so being able to provide clarity of value is important. Companies investing in mortgages need values they can trust, and technology is an important component behind arriving at those values. But what companies need more than anything else are skilled experts capable of reviewing all the data in its many different forms and making some sense of it. THE GROWING NEED TO RECONCILE ere are several reasons why reconciliations are on the rise, but the biggest by far is cost. Today's lenders and servicers are dealing with squeezed margins and loan production costs are at their highest levels ever, according to the most recent numbers from the Mortgage Bankers Association (MBA). In their struggle to remain profitable, lenders have sought out streamlined valuation methods they can get at the lowest price point. Reconciliation requests are also increasingly being used to validate values in the pre-purchase stages of non-QM loans and in default servicing scenarios. During the default stage, lenders and servicers frequently encounter historical valuations that can vary significantly. As a property heads closer to the default stage or toward foreclosure, a reconciliation review that produces a supported opinion of value backed by evidence can help servicers avoid leaving money on the table. In most cases, companies seeking reconciliation reports do not have the valuation experts on staff who can look at differing reports and determine the right value. Take BPOs, for instance. A servicer may look at a BPO and determine that it makes sense, given their knowledge of the local market. However, if there is some confusion about how the broker Technological innovation is critical to property valuations, but don't discount the importance of the human touch.

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