iMVI is a risk mitigation tool for individual
properties, portfolios and loan pools.
iMVI is an Intelligent Market Volatility Index that reports on residential real estate volatility at a precedent-setting level of granularity throughout the US. It
precisely reports the median price volatility starting at a national level down to
the subject property's neighborhood for a complete view of collateral risk. The iMVI is comprised of more than 15,000 individual indices segmented on dimensions of property type and geography with iMVI available on all valid US postal service addresses.
With iMVI you
can test 100% of a loan pool in a matter of
seconds — making better decisions with rich
intelligence down to the individual loan level.
iMVI provides immediate loan volatility scores
alerting you to high risk properties that require
escalation.
The iMVI report represents median price volatility based upon actual
recorded sales of greater than 1,500 sales within
a given iSegment each quarter. The subject
iSegment is comprised of the same type of home
(e.g., SFR versus condo) characterized by similar
attributes and price volatility. The report
provides two years of volatility data; six historical
quarters and a one future quarter forecast.
Introducing iSegments™ — the key to precision and accuracy.
The iMVI uses a proprietary technique creating Intelligent Segments (iSegments). Each iSegment is composed of demographically, economically, and socially similar micro-geographies exhibiting similar housing characteristics, located nearby one another and within the same county. The iSegmentation process clusters a collection of homogenous neighborhoods to establish statistical relevance.
The iSegmentation process for each property type
The segmentation process begins by defining the micro-geographies that cover the entire county.
Each micro-geography is characterized by 400 scaled and weighted demographic, social, economic, location, and housing characteristic dimensions. "Redlining" characteristics (e.g., race, country of origin, etc.) are excluded from the segmentation process.
The distance between all unique pairs of geographies is calculated as a measure of similarity.
All of the properties within all of the geographies are then assigned to an iSegment.
This process is continued until the entire subject county is assigned to iSegments for a particular property type. The process is then repeated for the same county with the next property type until the entire county geography is assigned to an iSegment for its particular property type. This process is repeated for every county. When all iSegments are constructed, a quarterly median house price index, iMVI, is calculated for each iSegment.
The iMVI uses “arms length” and “non-conforming” sales from MLS, public and market data to more accurately reflect values and risk at the loan level
iMVI uses the entire population of “arms length” sales including condo sales, separated by type, to establish unique indices by property type. And, iMVI includes “non-conforming” and conventional sales capturing slower market adjustments not reflected in other indices and excludes refinancing mortgages. Since the iMVI is partly based upon closed MLS transactions from live MLS feeds (where authorized), indications of short term trends and volatility can be observed in near real time.
iMVI features
National coverage.
Based upon actual prices of completed arms length transactions and non-conforming sales by property type.
Immunity to over-aggregation with each index based upon small closely spaced homogeneous geographic areas.
Available in an ad hoc or batch process and reported in a graphical or numeric format.
Flexibility to modify index start date and time.
Property price tiers with each segment containing a limited range of property price tiers.
Example applications
Seamless integration makes it easy to leverage your tolerance rules and escalation
policies to quickly locate and analyze high risk loans.
Available for individual properties, portfolios and loan pools.
