Automated Valuation Model Vendors Seek Enhancement Boost for Insured Products
April 15, 2005
Should the rating agencies cut credit enhancement levels for issuers that use automated valuation models backed by insurance on mortgages being securitized in the non-agency MBS market? Some vendors think so, but the rating agencies aren’t sure. So-called insured AVMs are one of the hottest – and most controversial – technology products on the mortgage landscape. Generally, such systems use statistical models and vast databases of property sales to estimate home values. The products…