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Crédit Logement innovates with an automated AI
Find out how the Crédit Logement Group has invested in modeling algorithms to improve the estimation of the value of its properties.
Context
Crédit Logement is a key player in the real estate loan guarantee business. They have been specialists in home loans for 45 years and more than 7 million borrowers have already chosen them for the financing of their home loan.
They grant one third of all real estate loans in France and more than 200 partner banks can offer the Crédit Logement guarantee for a real estate loan throughout France.
Challenges
Beginning in January 2022, lenders, at the request of the legislature, will be required to assess the property value of secured real estate and track inventory changes.
At the same time, the actors will have to make available in opendata all their DVF (Demandes de Valeurs Foncières) database, listing all the real estate transactions that have taken place over the last five years.
Beginning in January 2022, lenders, at the request of the legislature, will be required to assess the property value of secured real estate and track inventory changes.
At the same time, the actors will have to make available in opendata all their DVF (Demandes de Valeurs Foncières) database, listing all the real estate transactions that have taken place over the last five years.
In order to anticipate these new regulatory requirements, Crédit Logement wanted to have a high-performance, industrializable and maintainable in-house property valuation engine.
In such a way as to allow unit estimates.
The Crédit Logement group has chosen Micropole and its Data Sciences experts to invest in modeling algorithms and thus improve the estimation of the value of its real estate assets.
Methods and Solutions
Micropole's Data Science teams carried out a quality diagnosis and enrichment of internal data and the DVF database.
A prototype integrating different modeling algorithms according to the characteristics of the goods was created, and scaled up in an industrialization phase, according to 2 modes:
- The global estimation of all the assets
- Estimation, unitary and on-the-fly, via REST API
Benefits
- Stay ahead of the market with a powerful and efficient estimation engine
- Compliance with regulatory requirements
- Better use of internal data, better qualified, to improve lending scores
