New Calculator for Valuing and Selling Distressed Properties

Posted by Edward Seiler, Ph.D. on 8/30/16 9:30 AM

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Here at Summit, we work with investors and agencies who manage large portfolios of single-family (forward and reverse) mortgages. When our clients are faced with single-family properties that are also distressed, they need an especially efficient way to value and sell them.

graph_bar_and_line_blue_and_gray.jpgIn response to this need, Summit's Mortgage Finance team built a state-of-the-art valuation and disposition tool: The Distressed Asset Disposition Calculator (the Calculator).

Our new white paper ("Optimizing the Disposition of Distressed Single-Family Mortgages") explores how we use this tool to help investors more efficiently sell their distressed single-family properties.

Develop an Integrated Disposition Approach

The Calculator allows clients to compute reserve prices, expected sales prices, probabilities of sale, and expected sales costs. As the foundation for Summit’s disposition approach, the Calculator supports client goals of maximizing recovery, minimizing cost, following optimal timelines, and improving processes and oversight.

Implement a Forward-Looking Disposition Strategy

One of the major benefits of the Summit valuation and disposition solution is its forward-looking approach. Going beyond the historically based approach of relying on past trends, Summit created a new solution to leverage econometric and actuarial models, macroeconomic forecasts, and real-time data and market outlooks. 

Create a Business Intelligence (BI) Tool to Inform Disposition Decisions

Summit also builds user-friendly business intelligence (BI) tools to communicate the Calculator’s valuation and disposition decisions to key stakeholders. Summit’s interactive web application allows users to select and evaluate loans for best execution decisions in real time.

Distill Disposition Decisions into Actionable Rules

Our economists, financial analysts, and mortgage subject matter experts help analyze the outputs of the Calculator to provide the client with an optimal method to dispose of assets. After calculating the results, Summit focuses on accurate, clear, and concise dissemination of results using the same online-hosting platform as the BI.

Check out our new white paper to explore how Summit provides its clients with a dynamic approach that allows quick adaptation in a rapidly changing environment. 

Single-Family Distressed Asset Disposition

Topics: mortgage finance

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Summit is a specialized analytics advisory firm that guides clients as they decode their most complex analytical challenges. Our blog highlights the strategies and techniques we use, as well as relevant topics in current events.

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