How 2020 is still shaping the way lenders use data
Home price indices are valuable tools to help lenders understand trends and changes in the housing market. Last year, the industry relied on data more than ever before, and learned a lot about how data and analytics can quickly, safely and securely ensure consistency in markets. Data and analytics can also enhance a lender’s arsenal of tools in identifying risk and opportunity.
Practitioners need feedback in real time, or as close to it as possible. Existing home price indices are released months after the market activity occurs, making it difficult for them to add true value. These commonly referenced models rely upon outdated mathematical tools rather than taking advantage of advances in data and technology, and aren’t granular enough to be valuable.
The Radian Home Price Index, provided by Radian subsidiary Red Bell Real Estate, solves these issues. The Radian HPI is a comprehensive and timely measure of U.S. housing market prices and conditions, and is available just 15 days after each month ends.
The tool leverages machine learning and artificial intelligence and offers actionable data via micro-market indices, which combine things like property attributes with highly granular geographic dimensions. This combination of modern math, instant insights and micro-market granularities are the true value differentiators appreciated by Radian’s clients.
Using the Radian HPI, data is easy to digest and deriving insights is intuitive. The company recently launched a new visualization and analytics tool, enabling users to interact directly with its publicly released data set right from its website.
The Radian HPI is released every month and can be viewed at Radian.com/HPI.
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