xit2 has confirmed that the final piece of the technology jigsaw to support lenders when HIPs are introduced, receiving a valuation on the property , is in place and ready to go.
The core element of the Home Information Pack is the Home Condition Report. This will provide a highly detailed summary of the property which will be of great benefit to all involved in the process but not, a valuation of the property. This is obviously important to a lender and a consideration for lenders upon which lending decisions are based.
Lenders will be faced with the situation whereby their underwriters could receive a 26-page document, containing everything but this valuation figure. However, technology is available to condense this document into a more manageable summary to help the speed of producing offers and offer a valuation solution which fits neatly into the process.
As there is not a valuation figure with the HCR lenders will instead either contact the home inspector responsible for the HCR and request a separate valuation, instruct a valuation from a separate valuer on their panel or connect to an automated valuation model.
All of these options can be quickly and conveniently carried out though the use of robust technology.
Systems now exist to refine the 26-page report to a one-page summary, panel manage valuation instructions and utilise direct interfaces with AVMs. These systems are already working in as-live environments and will serve as a reassurance for the market that there is a tick in the box next to this particular issue.
Paul Duckworth, CEO of xit2 says: The confirmation of a launch date by the ODPM means that the entire market can move forward in delivering processes and procedures for the smooth introduction of HIPs. Some concern has been raised that the June 1 launch could disrupt the busy spring and summer housing period but I believe that the planning time available and the fact that system will be in place long before this date makes this unlikely. With technology and the motivation to use this technology so prevalent across the market, the Valuation issue, which many thought would case a problem, is sorted. Its full steam ahead for HIPs.