CAPE Analytics Launches New AI-Powered Automated Property Condition Reporting Tool | ET REALITY

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CAPE analysis has introduced a new AI-powered automated property condition reporting (aPCR) tool designed for institutional lenders, total loan investors and real estate investors.

This latest product uses computer vision to evaluate aerial imagery from aircraft and other sources and extracts information about the condition of the property, with a focus on marketability and property value, the company said Wednesday.

CAPE relies on multiple imaging partners, allowing it to bring together novel data sets. The solution offers a variety of nationwide property information available in a PDF report. It makes accessible information that used to be difficult to obtain, such as the condition of the backyard, the proximity of a property to a noisy road, train tracks or a body of water, as well as the occupancy status of a property. Data can also be accessed through an API, big data, or through a dynamic web application.

It allows home equity lenders, full loan investors and single-family rental investors to obtain “objective” and “current” assessments of the property’s exterior condition, focusing on changes that may affect the property’s value, he said the company.

The CAPE aPCR tool can be applied across the titration spectrum, from adding condition validation to an automated titration model (AVM) to powering titration workflows. The efficiency of this solution is also “a fraction of the cost of traditional methods,” said Jiapei Wang, senior product manager at CAPE Analytics.

The mortgage ecosystem is evolving rapidly, with different subsectors affected, such as lending, loan aggregation and loan securitization, said Sean Begley, senior director of business development at CAPE Analytics. HousingWire. The common understanding of appraisal, inspection and even property value is changing, as more and more technology-based alternatives emerge. Begley said CAPE Analytics’ aPCR represents that missing piece, instantly informing mortgage professionals about conditions. The tool can be combined with other types of valuation metrics.

“The real competition for us is the status quo,” Begley added.

However, some elements of the images, such as angles, can be misleading, Begley acknowledged. When it comes to external factors of obsolescence, such as the proximity of a high-voltage power line, it can be difficult to assess the exact distance between the property and the potential hazard. To address the problem, CAPE Analytics developed what it says is a reliable method, which calculates the distance from the closest point on the package to the object of interest to obtain an objective and unbiased measurement.

“Our approach here is an example where we bring the best data sets to bear on solving customer problems, so we use multiple data sets to build this capability,” Begley said.

CAPE Analytics said existing human visual inspections, such as traditional property condition reports (PCR), fail to detect 70% of property issues identified by CAPE aPCR.

The product, which is available now, follows significant efforts by federal agencies to adopt automated valuation models. fanny mae In late April it said it updated its sales guidance to note that appraisals were no longer the default valuation standard.

Two months later, six federal agencies sought public comment on a rule designed to ensure the credibility and integrity of models used in real estate valuations. Heproposed rulewould implement quality control standards governing MAVs used by secondary market originators and issuers to value real estate collateral securing mortgage loans.

However, the mortgage industry has expressed some reservations about the “unintended consequences” of the new quality control standards for AVMs.

In a letter to regulators, the Mortgage Bankers Association and the Consumer Bankers Association said MAVs and technologies like them can alleviate appraiser shortages, reduce transaction costs and protect against individual appraisal bias. Ultimately, a strong regulatory framework remains a critical imperative to achieve these outcomes.

They argued that any regulation should consider the practical aspects of model risk management and its potential unintended consequences.

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