DBRS completed an excellent analysis regarding Residential Mortgage Backed Securities October 2011. See below Link to DBRS.com to get a copy.
http://www.dbrs.com/about/methodologies
Of particular interest is how the anlaysis identifies additional valuation risk after market decline and property valuation haircuts are applied.
This additional risk can be measured by proper application of the appraisal process.
Winfield Realty & Consulting Inc. completes a sale ratio sensitivity analysis on every valuation for REO, Short sale, Pre-foreclosure, Refinance, Purchase, Bankruptcy and Tax Asessment Appeal.
A statistical sale ratio study identifies risk imbedded in each property and subsequent market as follows:
- Identifies & quantifies under or over improvements
- Identifies Standard Deviation of value and/or price
- Measures variance in value and/or price
- Provides a Confidence score
- Evaluates Valuation and/or price Bias
- Identifies a valaution and/or price error rate
The tools are available to better review valuations and prices regardless of assignment type: Mark to Market, Acquisitioin Due Diligence, Appraisal, BPO, AVM, Retrospective Review Appraisal, Desk Review or Sale Price evaluation.
For further information Please contact me at Kwolf@winfield-realty.com
