The Realo Estimate® for the new EBA Guidelines on Loan Origination and Monitoring
In May of 2020, the European Banking Authority (EBA) published its final report on the new regulations concerning loan origination, titled Guidelines on loan origination and monitoring. A key aspect of this document is new regulations for the valuation of immovable property as collateral, as it reports that statistical models are allowed to be used for this purpose at the point of origination. Furthermore, starting January 1st 2022, loan institutions will be required to rely on independent third parties for the valuation of immovable property as collateral for loans.
This paper gives a brief overview of Realo’s Valuation Engine and detailed how it satisfies all the criteria put forth by the EBA regarding property valuations by statistical models. It shows how this engine is an ideal solution as a third party appraisal tool for loan institutions given the new guidelines.
