- Study Explores Accuracy of Broker Price Opinion Versus ValuePoint4 Default(TM) Automated Valuation Model - SAN FRANCISCO, March 4 /PRNewswire-FirstCall/ -- First AmericanCoreLogic, a member of The First American Corporation (NYSE: FAF) family ofcompanies and a leader in residential mortgage data and analytics for themortgage industry and Wall Street, today announced that the latest issue ofits LoanPerformance MarketPulse report is available for download athttp://www.loanperformance.com. This latest report features a new First American CoreLogic white paperentitled, "Assessing Broker Price Opinion Accuracy: Can a Tailored DefaultAVM Perform at Parity?," by Robert L. Walker, executive vice president,collateral solutions for First American CoreLogic and Mark Fleming, chiefeconomist for First American CoreLogic. According to Walker and Fleming, lenders, servicers and investors mustdetermine when a broker price opinion (BPO) is the appropriate valuationmethod and which BPO provider to use. Selection criteria can includeturnaround time, customer service and price, but these criteria do notnecessarily indicate valuation accuracy. In fact, there is littledocumented research indicating the accuracy of BPO valuations. A moreimportant selection criterion should be consideration of technique accuracyrelative to the risk of delinquency and loss severity, as well as theextent of due diligence performed and reasonable pricing. "ValuePoint4Default(TM)* (VP4 Default) is an automated valuation model (AVM) that hasbeen explicitly designed and calibrated to predict a "distressed value" forthe property as opposed to a market value," said Walker. "In this paper westudy BPO accuracy in the specific application of assessing real estateowned (REO) sale value, which is becoming increasingly more common. We thencompare BPO accuracy to that of VP4 Default on the same sample of REOsales. The results of this test show that VP4 Default can perform ataccuracy levels similar to that of BPOs tasked with REO value assignment." The MarketPulse report also summarizes a selection of key mortgageperformance statistics through September 2007, including summary data onserious delinquency and prepayment rates for prime and subprime loans.MarketPulse is a complimentary quarterly report that presents analysis ofand insight into delinquency and prepayment trends for the prime, subprime,home equity, mortgage-backed and asset-backed securities markets. Eachissue also contains a "RiskView" section with valuable insights fromthought leaders on the prime, subprime and securities mortgage marketplace.The summary data in each issue of MarketPulse is extracted from the FirstAmerican CoreLogic industry-leading LoanPerformance mortgage servicing andsecurities databases. MarketPulse can be accessed by completing theelectronic subscription form at http://www.loanperformance.com/marketpulse. About First American CoreLogic First American CoreLogic, a member of The First American Corporation(NYSE: FAF) family of companies, was formed through the merger of FirstAmerican Real Estate Solutions, America's largest provider of advancedproperty and ownership information, analytics and services, and CoreLogic,the leading provider of residential mortgage risk management and fraudprotection technology and services. The combined companies' databases covermore than 3,000 counties, representing 99.1 percent of the United Statespopulation. With more than 600,000 users nationwide, First AmericanCoreLogic products are used by businesses to improve customer acquisitionand retention, detect and prevent fraud, improve mortgage transaction cycletime and cost efficiency, measure the value of residential and commercialproperties, identify real estate trends and neighborhood characteristics,track market performance and increase market share. More information aboutFirst American CoreLogic can be found at http://www.facorelogic.com. About First American The First American Corporation (NYSE: FAF) is a FORTUNE 500(R) companythat traces its history to 1889. With revenues of approximately $8.2billion in 2007, it is America's largest provider of business information.First American combines advanced analytics with its vast data resources tosupply businesses and consumers with valuable information products tosupport the major economic events of people's lives, such as getting a job,renting an apartment, buying a car or house, securing a mortgage andopening or buying a business. The First American Family of Companies, manyof which command leading market share positions in their respectiveindustries, operate within five primary business segments, including: TitleInsurance and Services, Specialty Insurance, Mortgage Information, PropertyInformation and First Advantage. More information about the company and anarchive of its press releases can be found at http://www.firstam.com.
* ValuePoint is a registered trademark of First American CoreLogic. Media Contact: Investor Contact: Carrie Gaska Mark Seaton Corporate Communications Investor Relations The First American Corporation The First American Corporation (714) 250-3298 cgaska@firstam.com (714) 250-4264 mseaton@firstam.com
