Macro assessments of the real estate market(s) are routinely completed by our Market Risk professional and communicated back to the investment committee on a monthly basis for their review. Further, on every loan file, the individual zip code is assessed for near-term and long-term viability and is included in the assessment of the loans suitability for the platform.
In addition, the valuation reports reviewed in underwriting on every loan file include a supply/demand market score assessed on a basis score from 1 to 100. For instance, loan applications for a market that lacks necessary demand may be declined.
Metrics assessed include but are not limited to:
Market risk score (third-party generated)
Days on market
New listing supply
Re-listing inventory
Existing inventory
Inventory Y/Y
Days on market segmented by quartiles
Listing price decreases