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CRIF Lending Solutions Blog

Expert Insight. Forward thinking. Trusted perspective.

Why Fast and Accurate Collateral Valuations are So Important for Loan Software Success

For 24-year-old college student Grant Hartley, the $2.22 he paid in July for an old bat at a Goodwill store turned out to be one heckuva purchase. The bat once belonged to Pittsburgh Pirates Hall of Fame third baseman Harold “Pie” Traynor and is potentially worth thousands of dollars.

Goodwill obviously isn’t your typical antique store, but I bet someone is disappointed the store didn’t benefit from knowing what it had before ringing it up for Mr. Hartley. The point of bringing this up is to illustrate how inaccurate valuations can come at huge costs.

For lenders, accurate vehicle valuations are essential for optimized loan origination system performance. Almost as important, lenders need those valuations immediately. Any kind of delay may impede the financial institution’s ability to compete for loans. Using inaccurate vehicle valuations can throw off the entire financing package regarding risk appetite for loan term, rates and other important elements that often hinge on the starting point of vehicle valuations.

That’s why it’s so important to have a proven and industry-trusted web interface that connects your loan software to NADAguides for vehicle valuations. Some interfaces are too slow or don’t provide the most accurate valuations. To help, here are the top four benefits associated with fast and efficient loan software connectivity to NADAguides:

Faster and more accurate data

Your valuation interface should automatically connect to NADAguides and provide the latest information as soon as you click on them. When you select a manufacturer, model and year, your interface should connect to NADAguides each time to get the latest values at the highest possible speed. This is relevant because your collateral valuation will always be the latest available and limit the loan risk as much as possible.

More applications processed

As we’ve mentioned, leveraging loan software with the best valuation interface saves time and increases efficiency. With more accurate valuations at a faster pace, loan officers can process more loans per day. This improvement translates to more productivity and ultimately increasing revenue and profit for your financial institution.

Human error reduced

Much like with manual decisioning, a lack of automation opens the door for inconsistency and error. Because collateral valuation is automated with the right interface, the risk of data entry errors is eliminated. Automation also increases speed and accuracy of the loan approval process, which is important from a compliance standpoint. Your interface should send the values directly into your loan software, which gives the loan officer immediate access to the suggested loan amount.

Better customer/member service

Frictionless processes are critical in today’s digital era of lending. It’s important for an applicant to get as far along in the process in a single session. Ideally, everything should be closed in one session. To do this, you need to maximize automation as well as reliability of the data used. This is where the right combination of loan origination technology and a valuation interface comes into play. With technology doing as much of the heavy lifting as possible, your team is free to concentrate on strengthening relationships.

With our recent partnership with SD Sharp for its Value Finder solution, CRIF ACTion offers the perfect combination of robust decisioning technology with the industry’s most trusted valuation interface for NADAguides. If you’d like to learn more about how this could be leveraged for your institution and see a demo of Value Finder in action, please click the button to request a complimentary consultation.

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Photo Credit: Jamie

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