How volatile is the collateral?
Lenders have excellent information about borrower risk. They also have sound appraisals for every mortgage. But how durable is the valuation of the collateral? Real estate prices fluctuate, and some properties are much riskier than others.
acretag's Property Risk Score helps lenders estimate that risk on a parcel level and use it as an overlay to existing decisioning to add customers, keep existing ones, and improve overall portfolio performance.
Core Benefits
Thin File /
Near Prime
When borrower information is limited or borderline, lenders can rely more on collateral durability to manage overall risk.
We are improving risk identification, not relaxing risk standards.
Pre Selection
Increase conversion rates and reduce marketing costs when compliantly marketing to pre-selected prospects that have a lower property risk profile.
Portfolio Risk Assessment
We help lenders flag risk migration, focus QC efforts and identify high risk loans before they default. Banks use it to also enhance CECL segmentation and manage loss estimation and reserve adequacy.
Secondary Market
We help lenders prove which loans are safer than they look — so they don’t have to discount them like the rest of the pool.
Instead of being priced as “generic near-prime,” the loan is priced as “near-prime with strong collateral profile”
FAQs
How can acretag's Property Risk Score benefit lenders?
Lenders use acretag's Property Risk Score as an overlay to existing models. It helps in identifying more customers, keeping existing ones and improving overall portfolio performance. All is done while keeping existing risk thresholds and in compliance with ECOA / Reg B requirements.
What performance lift can lenders expect?
Lenders can expect an overall material increase in the GINI scores of the their existing models, better segmentation of thin-file / near prime borrowers, reduced EPD and improved portfolio performance.
What makes acretag different from other alternative credit data providers?
acretag's patent-pending Property Risk Score is based on a novel approach to estimating parcel-level collateral volatility. While relying on different types of data, acretag is utilizing AI to derive core insights that generate the score.
Get in Touch
and learn more about acretag's Property Risk Score