I wanted to spend a bit of time in this update to highlight something we have been working on for a few months now - a way to improve and speed up the collateral valuation process. As I have highlighted in our previous updates, the collateral valuation process is extremely archaic (please see an informative article here if interested in more info), takes a long time, at times, has quality issues. The appraiser population is getting older and dwindling in numbers. We believe technology is the only solution for a long term (albeit partial for now) fix to this problem, which is only getting worse with time.
We put together a presentation on how we are looking to improve this process. TL;DR:
We have partnered with 2 vendors, outlined below, that we intend to utilize to mimic what the appraisal process does today, but do it with more efficiency and accuracy - TruePic for pictures and HouseCanary for valuation. TruePic is a industry leader in obtaining and processing photos with advanced fraud detection. HouseCanary is an industry standard real estate valuation software that will enable us to adjust values based on property condition. We have begun using these solutions in addition to obtaining the appraisal report, and will continue this for about a month, after which time, we will provide data and hope to switch to using this new process for valuing certain collateral (under $500k, single family only, light to medium rehab).
Loan Originations in Tinlake
The numbers for September are lower because we have used up all of the available TIN. We are working on a plan to raise additional amounts to continue to utilize Tinlake/MakerDAO.
New Loans: 4
New Loan USD Volume: $1.59mm
Average Originated Interest Rate: 8.75%
Average Tinlake Finance Fee: 6%
Average Loan Amount: DAI 379,875
Average Loan to Value: 81%
Average FICO score: 718
Average Term: 13.5 months
Current MakerDAO Debt Ceiling: $20mm with about $8.7mm used
**data provided is based on loan origination date, not finance date
90+ day late: 0
We have added numerous improvements such as the ability to add a co-borrower to the loan app. We are still working on a tighter Tinlake integration and a number of other innovations.
Recruiting a full-stack developer and a capital markets analyst. If anyone has any friends who may be interested, please DM me.