Patent ID: 7987124

Claim:
A method of evaluating a first appraisal value associated with a mortgage loan, the method comprising the steps of: receiving loan data for the mortgage loan in a computerized underwriting system, wherein loan data includes the first appraisal value and at least one of foreclosure sale data and purchase money transaction data, the first appraisal value being received from a loan originator associated with the mortgage loan, the first appraisal value being related to a property associated with the mortgage loan; determining a second appraisal value independent of the first appraisal value, the second appraisal value being related to the property associated with the mortgage loan, the second appraisal value being determined using an automated valuation model; estimating an accuracy of the first appraisal value based on the second appraisal value and the at least one of foreclosure sale data and purchase money transaction data; generating an underwriting recommendation for the mortgage loan at the computerized underwriting system; providing the underwriting recommendation to the loan originator; and providing a message indicating that a credit risk characteristic for the mortgage loan is consistent with a potential excessive valuation issue for the mortgage loan, the message being provided to the loan originator; wherein the credit risk characteristic comprises one of a loan to value ratio, a credit score, a loan purpose, and an absence of subordinate financing; wherein estimating the accuracy of the first appraisal value includes comparing the difference between the first appraisal value and the second appraisal value to a predetermined threshold, the predetermined threshold being determined based on a statistical confidence level determined for the second appraisal value.