Why it’s Time for Credit Unions to Rethink BPOs

Credit Unions

Jul 06, 2023, 22:46 ET


The Broker Price Opinion (BPO) has been a useful tool in the mortgage industry for a long time. In the credit union, these affordable tools have been used in the marketing department to determine whether a borrower has tappable equity, and in the servicing department for annual portfolio valuation and default servicing.


Because these are standard tools that have been used for decades, they often sit on the shelf until someone in the credit union needs them. This means that many executives are likely unaware of the advancements the industry has achieved in this area.


Both the technology used to manage national networks of real estate professionals and the additional data that can now be included in these reports has made the BPO much more powerful than it was in the past.


Even better, new automated valuation models (AVMs) are much more powerful and accurate than ever before.


These tools are even more powerful when they are part of a larger solution for collateral valuation. That’s exactly what more credit unions are looking for today.


Why credit unions need a new solution

Like every financial institution, credit unions want to get the most accurate valuation at the lowest cost. It’s important to reduce costs, especially in today’s environment, but accurate valuations are a must.


Executives do not want to make pivotal decisions based on bad data. An appraisal that misses the mark and reports the value too high or too low can have costly repercussions.


Unfortunately, the companies that are large enough to innovate and develop the new valuation methods charge high fees. They target the industry’s largest institutions, which leaves most credit unions without an affordable alternative that can deliver the same quality results.


Fortunately, NCCI works not only with credit unions of all sizes but also some of the most innovative technology developers in the business. These large developers can’t use their resources to sell their products into smaller institutions, but NCCI already has those relationships.


We made it our mission to find a solution to this problem that would allow our credit union clients to get the data they need in an affordable manner.


Bringing the best valuation technology at affordable prices

Big developers employ large teams to solve big problems. Accurate property valuation has been a focus area for a number of these companies for years now. Fortunately, their innovative new product sets are paying off and large institutions are now relying on them for more accurate information.


But what about smaller institutions? Credit unions have the same need for this data as any other lender, but these new products are often priced out of their reach. Not anymore.


NCCI is proud to announce our 3-All-in-One AVM Service.


This new service is the result of a partnership between NCCI and two leading AVM providers. It offers credit unions the most accurate real estate insights into property values and trends – instantly and affordably.


To create this new offering, NCCI has partnered with the industry's 2 leading AVM resources: RELAR, the industry's leading predictive technology; and Quantarium, providers of the No. 1 ranked AVM model.


In the next post, we’ll tell you more about these offerings and why more credit unions are embracing them either in addition to the traditional BPO or as its replacement.

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