As a growing number of real estate firms serve up home value estimates on their websites, CoreLogic, the provider of automated valuation models deployed by some real estate companies, has announced plans to snap up a provider of appraisal and valuation technology.
CoreLogic, a provider of a wide range of real estate-related data and services, has entered into an agreement to acquire FNC for $475 million. FNC offers technology that automates property appraisal ordering, tracking, documentation and review for lender compliance with government regulations. The transaction is expected to close during the first quarter of 2016.
The acquisition, among other things, will help CoreLogic continue to improve its automated valuation models (AVMs), according to Alyson Austin, a spokeswoman for CoreLogic.
CoreLogic offers at least one AVM to real estate brokers that they can use to generate instant home value estimates, which a small, but increasing number of real estate firms are publishing on their websites. Redfin, for example, recently began tacking home value estimates onto its website’s property details pages.
“We’re always improving our AVMs and adding a company like this to the CoreLogic family is very important,” she said.
“FNC’s platforms, together with our existing valuation-related assets and our recent acquisition of LandSafe Appraisal Services, allow us to gain operational scale and expand the value proposition of our VSG,” said CoreLogic CEO Anand Nallathambi in a statement. “We expect property valuation to be an area of significant future domestic and international growth.”
FNC’s appraisal compliance, workflow and process efficiency technology serves mortgage lenders and servicers, appraisal management companies, secondary and capital markets firms and property and casualty insurance companies.
Its platforms are integrated into the workflow systems of 18 of the 20 largest U.S. banks, and provide connectivity to about 80,000 appraisal, title and inspection vendors, according to CoreLogic.
“Its solutions allow industry participants to automate the collateral valuation and diligence process, monitor and optimize vendor performance and facilitate compliance with regulatory and internal risk management policies,” CoreLogic said in its announcement.
