Bank looks to eliminate fraudulent valuations

The ANZ pilot has been running since April and another bank is planning to join in the trial starting this month, PropertyIQ, which is 50%-owned by Quotable Value, says.

Rather than those seeking a mortgage commissioning any valuer, PropertyIQ acting on behalf of their bank, will assign them a valuer from a pre-established panel.

PropertyIQ says it has already contracted more than 50 valuation offices nationwide to its panel, providing multi-firm coverage in almost every urban area in the country and it is working on extending panel numbers as bank engagement and volume supports growth.

ANZ says feedback from its customers has been entirely positive. "The system simplifies the process of valuation ordering and also helps to protect customers and the bank from fraud and third-party influence because of its emphasis on independence and also the fact approved and trusted valuers are selected fro the panel," the bank says.

"Valuation jobs are allocated to valuers on a random but fair and equitable basis for each valuation request," it says.

Citing the example of the collapsed Blue Chip, whose valuations have turned out to be grossly inflated, PropertyIQ says the new system will protect both the banks and their customers.

The process of accepting valuers onto its panel "helps ensure that the valuation firms and the valuers who provide the valuation services are of a high quality and can be relied upon to provide top quality services," it says.

ProperyIQ says through its shareholders - RP Data, which is 38%-owned by US-based First American Core Logic owns the other 50% - it has experience in establishing and managing valuation ordering services across the US, British and Australian markets.