Valuation of assets and property collateral

The problem

The change in the house prices in recent years has led to a significant increase in uncertainty about the value of property portfolios. This situation is exacerbated by the rapid growth of property portfolios purchased or returned, due to mortgage default or seizures by financial institutions. This makes it all the more necessary to have tools to determine property prices complying with two fundamental premises:

• Ability to assess the change in price in different scenarios
• To perform the above at a reasonable cost

The solution

AIS has developed tools that comply with these premises which have been successfully implemented in Spain and Mexico. The developed tool uses the method RDF (Risk Dynamics into the Future) in the support to make strategic decisions on property portfolios using internal data and simulation tools.