AVM - Automated Valuation Model

The Automated Valuation Model consents to evaluate the fair value of an asset in real time via the market comparison approach. AVM combines mortgage and Cadastral information with the real estate transactions made, using dynamic, homogenous microzones and, above all, exclusive comparables (buying/selling deeds, Tribunals’ estimations, real estate listings and ARC’s network appraisals).

AVM simplifies the adherence to IAS 39 and some specific regulations about prudential vigilance, required by the Document 263/2006 released by the Bank of Italy. It proposes a device that permits to respect the organizational requirements for the use of techniques for credit risk management (CRM); respect the obligations related to Due Diligence and monitoring during the securitization; assess the Loan to Value ratio of the credit exposures secured by mortgages. AVM is the only system currently on the market capable of precisely georeferencing an asset and it aims to include the activity of granting mortgages, performed by the experts, as it is already being done in the anglosaxon countries.