How volatile is the collateral?
Lenders have excellent information about borrower risk. They also have sound appraisals for every mortgage. But how durable is the valuation of the collateral? Real estate prices fluctuate, and some properties are much riskier than others.
acretag's Property Risk Score helps lenders estimate that risk on a parcel level and use it as an overlay to existing decisioning to add customers, keep existing ones, and improve overall portfolio performance.
Banks
Portfolio Risk
Identify collateral concentration, geographic risk exposures and flag risk migration
CECL
Enhance CECL and loss forecasting with collateral-driven segmentation
Stress Testing
Improve stress testing and downside risk visibility
Capital Efficiency
Better differentiate risk within the portfolio to allocate capital more efficiently and improve risk-adjusted returns.
Non-Depository Lenders
Thin File / Near Prime
When borrower information is limited or borderline, lenders can rely more on collateral durability to manage overall risk.
We are improving risk identification, not relaxing risk standards.
Pre Selection
Increase conversion rates and reduce marketing costs when compliantly marketing to pre-selected prospects that have a lower property risk profile.
Secondary Markets
We help lenders prove which loans are safer than they look — so they don’t have to discount them like the rest of the pool.
Instead of being priced as “generic near-prime,” the loan is priced as “near-prime with strong collateral profile”
FAQs
Same FICO, same LTV, 5.8X foreclosure chance?
Yes, properties have hidden volatility that traditional models don't capture. acretag uncovers this risk and helps lenders identify which properties are riskier than others.
How can acretag's Property Risk Score benefit lenders?
Lenders use acretag's Property Risk Score as an overlay to existing models. It helps in identifying more customers, keeping existing ones and improving overall portfolio performance. All is done while keeping existing risk thresholds and in compliance with ECOA / Reg B requirements.
What performance lift can lenders expect?
Lenders can expect an overall material increase in the GINI scores of the their existing models, better segmentation of thin-file / near prime borrowers, reduced EPD and improved portfolio performance.
What makes acretag different from other alternative credit data providers?
acretag's patent-pending Property Risk Score is based on a novel approach to estimating parcel-level collateral volatility. While relying on different types of data, acretag is utilizing AI to derive core insights that generate the score.
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and learn more about acretag's Property Risk Score