Fifteen years ago, she was the anti-abortion, anti-drug, anti-climate change darling of right wing Tories – feted by hard-liners for defending a government policy to shackle pregnant prisoners when in hospital giving birth. Now she’s the eccentric fiction novelist who can’t dance. She joins the ranks of Christine Hamilton, Jamie Oliver, and Chris Evans as a star whose reputation has been cleaned and polished, having once been mud. Christine Hamilton has turned from battle-axe to slightly saucy TV star. Oliver has evolved from intensely grating fat-tongued scrubber to heroic public campaigner. Evans has changed from DJ prima donna to Wogan-esque stalwart of Radio 2.
Automated Valuation Models (AVMs) have had to go through a similar change. A change they’ve managed without the help of Anton Du Beke.
No longer able to remain a two dimensional house value, they now provide a wider valuation picture. We’re well beyond relying on them as a sole valuation tool, but they can be used alongside physical valuations to help cut fraud.
Back in 2007, AVMs were all the rage. They were being used to cut surveyors out of the equation and deliver 24-hour mortgages. Naturally, in the wake of the credit crunch, they became something of a whipping boy for the industry. But now, the same technology can be used to support surveyors’ valuations, gather intelligence and help the industry stamp out fraud.
Fraud has become a massive headache for the industry. This is in part down to years of lax lending when fraud wasn’t much of a concern as house prices continued to rise unabated. But to quote the mighty Warren Buffett, it’s only when the tide goes out that you learn who’s been swimming naked. And so it has been with fraud.
AVMs used with our web based technology provide yet another weapon in the anti-fraud armoury. Instead of being used to cut corners in valuation process, they can now be used alongside traditional valuations to stamp out fraud.
How? Well, using the combination of surveyor and technology can weed out potentially problematic cases. A supporting AVM can provide a quick, cost effective, transparent, independent, and impartial check of a valuer’s assessment.
By looking at comparable properties, images, historic data, maps, AVM values and other relevant data on the surrounding area, technology can be used in conjunction with a valuer’s assessment. If there are significant discrepancies between the two then lenders know they’ve red-flagged potentially risky or fraudulent activity.
Identifying trends associated with properties that turn out to have issues, can also be used to prevent similar situations in the future. Being forewarned is being forearmed. The best way to do this is to make sure that the company you exchange data with is linked to a major data provider, such as Rightmove.
And this can be taken a step further if lenders work together to share information – pooled resources strengthen defences. Bringing solicitors and surveyors into the same sphere of information will increase efficiency further. If the entire industry shares the aim of nailing fraud in the home buying process it will cost the banks – and in turn consumers – less.
Mark Blackwell is managing director of xit2
