Real Estate Technology Credit Rating and False Assumption. The flawed Real Estate Rating technology of the past, illustrated how the important it is to have proper real estate ratings. Since these ratings are what governs risk. Real Estate Rating and FICO scores Exposing the limitations of FICO scores, a recent study by Fair Isaac and the bond rating agency DBRS found that a borrower with a high credit score is just as likely to default on a no-money-down mortgage as is a lower-scoring borrower who puts down as much as 40%.
And this is primarily because if future price movements trend downward, the borrower will be upside down very quickly. Once inadequate risk management for credit rating purposes, and real estate technology rating is added to this slew of misconceived lending practices, it becomes clear why the credit markets collapsed, sending mortgage loan delinquencies and charge-offs to the highest levels in nearly two decades.
Today, little has changed, and no new data or new real estate technology is available to anyone.
Lending, Real Estate Rating and Growth Maps
Lending practices proved inappropriate for making prudent decisions about lending. They ignore nearly ALL local market risk, with NO access to current local market (city block) real estate growth. They do have data affecting borrower s creditworthiness, which, however, this has little impact on borrowers debt servicing capacity and therefore on default risk, in the case where the asset and local market declines in value. Weather Commercial Real Estate Ratings or residential, Rating Real Estate Companies, the models were quantitatively flawed.
Unlike these models, the Growth Maps takes into account various economic factors, such as future interest rates, local employment and household income growth, growth is leading economic indicators, when making predictions about trends in home prices. With the Growth Maps real estate technology, current local growth data, and accurate local real estate forecasts, you have in your hands some of the best local real estate technology every developed.
For more information, watch our free demo video on our homepage, and download your FREE eBook titled: “What’s Next for Commercial Real Estate Technology: Leveraging Technology and Local Analytics to Grow Your Commercial Real Estate Business” at https://www.growth-maps.com/free-ebook/
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