Home Value Explorer®
Home Value Explorer
Home Value Explorer® (HVE®) is Freddie Mac’s automated valuation model (AVM) that estimates the fair market value of properties in seconds. It does this for single-family, condo, co-op and 2-unit properties in the United States.
HVE’s predicted values are generated every month for all properties in the country for which Freddie Mac has data – currently more than 103 million properties in all 50 states and more than 3,100 counties. They’re then made available externally to the industry through a network of HVE distributors.
Why Choose HVE?
AVMs are efficient, effective and essential tools in loan manufacturing and portfolio analysis. When choosing an AVM, it’s important to consider coverage, vendor reputation, current technology, accuracy and price.
HVE can help simplify the mortgage process by streamlining the collateral valuation cycle and lowering costs. Freddie Mac’s dedicated team of modeling experts works to continually improve and enhance HVE to keep it best in class.
How Does HVE Work?
HVE is an ensemble model with machine learning components combined with an industry-leading house price index. This ensemble model helps to improve both the coverage and predictive accuracy of HVE.
HVE leverages a wealth of data that results in the model being broad and deep-trained, particularly for homes that secure conventional loans. These inputs include:
- Loan data
- Public records sales and tax assessments
- Appraisal data from the Uniform Collateral Data Portal® (UCDP®)
- Multiple Listing Service (MLS) data
With this information, HVE outputs not just its estimate of current property value but also a statistically derived measure of uncertainty – a forecast standard deviation (FSD) – that measures the precision of its value estimate. Together these two numbers provide a likely range for a property’s estimate of current value.
HVE Use Cases
HVE has a number of potential uses, including:
- Support of many lending functions such as:
- Underwriting review for first and second mortgages, and home equity loans/home equity lines of credit
- Credit risk management
- Loss mitigation
- Refinance and modification of mortgages
- Support for processes related to evaluating insurance needs
- Support for quality control (QC) processes
- Support for portfolio management processes
- Support for activities associated with the purchase or sale of homes
Want to Learn More?
For more information about HVE, please contact an HVE distributor for pricing information and/or product demonstrations.