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Valuation Blog

Your Valuation Options When Buying NPLs and RPLs

Non-performing and re-performing loans (NPLs/RPLs) have become an attractive asset in today’s market — often offering financial incentives to buyers looking for opportunities through active loan servicing.

This active NPL/RPL market has only continued to intensify in recent years — as the market has begun to normalize, investors have turned to Fannie Mae and Freddie Mac to sell conforming loans — meaning both GSE giants are selling off non-conforming loan pools, particularly NPL/RPL investments, to free up available capital.

While there is certainly potential for reward when buying NPLs and RPLs, there is also still an inherent risk — not to mention a challenging process of determining value of the underlying assets.

SVI offers an array of products to help you confirm value and move your deals forward with confidence, including:

Actionable Broker Price Opinions

Broker Price Opinions (BPOs) are perhaps the most common product used for NPLs and RPLs, as a BPO is a great tool that accurately represents the anticipated sale price of a property in question.

SVI offers industry-leading BPOs that are consistently highly rated for turn-time and accuracy. SVI’s BPO with Integrated Market Data (IMD), assures fewer data discrepancies, and Intelligent Quality Control (IQC) helps catch issues before submission.

To make sure the BPO learnings are quickly actionable, SVI provides clients with a complete pool report that floats “red flag” loans (those with a large value discrepancy) to the top, including summary comments on all issues. This report is invaluable because it helps your organization efficiently target the properties where more due diligence is needed.

Everything to Know About NPL and RPL

SVI’s Appraisal Desktop with Inspection

If a little more due diligence is required to determine market value, SVI’s Appraisal Desktop with Inspection (ADI) is another great option.

The ADI combines a desktop appraisal with a full on-site property inspection, filling the gap between a BPO and a full Field Appraisal. SVI’s ADI offers a timely, affordable, accurate and compliant home valuation product that is completed by an appraiser in adherence to Uniform Standards of Professional Appraisal Practices (USPAP).

Additionally, SVI’s ADI meets all inter-agency evaluation and appraisal guidelines — providing a quality valuation in an easy-to-read format with a turn-time of less than five business days.

Value Reconciliations

If utilizing the Seller’s valuation, it’s best to conduct a Value Reconciliation review. SVI’s report includes research and verification of the data used within each report, and an assessment of each report’s data selection and value conclusion; leading to a confirmation of the most probable fair market value.

If you need a partner to value your NPL/RPL deal, SVI offers a range of accurate solutions that can meet your needs. SVI is also rating agency approved for use on all securitizations. Don’t hesitate to reach out to learn more about our suite of valuation products.

SVI is ready to assist you.