Class Valuation Introduces CVA for Mortgage Lenders
Class Valuation CEO, John Fraas, emphasized the importance of reliable valuation data in today’s market, stating that uncertainty can be costly for lenders. He highlighted the significance of Class Valuation Analysis (CVA) in providing clarity, confidence, and compliance for high-stakes trading decisions related to mortgage servicing rights.
CVA is designed to adhere to the Uniform Standards of Professional Appraisal Practice and is suitable for various stages of the loan life cycle. This includes forensic appraisal reviews, internal control audits, construction validation, and post-board evaluations mandated by government-sponsored enterprises.
Each CVA review involves a risk-based evaluation conducted by a licensed appraiser, validation of critical report elements like comparables and adjustments, and a comprehensive report to support mortgage lending choices.
The company also noted that its CVA process aligns with due diligence and review criteria endorsed by major credit rating agencies.
Fraas highlighted the value of CVA in helping clients assess collateral quality and manage risk throughout the loan lifecycle by combining licensed expertise, AVM-backed analysis, and actionable reporting.