There's capital trapped
in your collateral.
Atlantica's Dual AVM values residential collateral the moment a loan is underwritten and revalues the entire mortgage book continuously: recomposing LTV, recalculating capital, and producing an inspection-ready audit trail.
Illustrative example. Collateral appreciation lowers the LTV and migrates the exposure to a lower risk-weight bucket (CRR Art. 125, Standardised Approach).
Most Italian banks still run on the origination appraisal.
The collateral value behind risk-weighted assets is often the origination appraisal — three to seven years old, updated at best by a national price index. Two opposite errors live in the same book, and both are material under Pillar 2 SREP.
Capital trapped
Where the property has appreciated, the real LTV is lower than the booked one: the exposure absorbs more capital than it should. That's CET1 tied up for no reason.
Risk unrecognized
Where the property has depreciated, the real LTV is higher: insufficient risk weight and under-provisioning under IFRS 9. That's risk the numbers don't show.
One model, two modes.
The same regulatory-grade AVM runs in two distinct regimes: maximum precision for a single credit decision, full coverage for the entire portfolio.
Real-time valuation, at the point of lending.
During underwriting, the AVM returns a point market value with a confidence interval in under a second. Tuned for maximum precision on the individual file.
- Synchronous API response, sub-second
- Confidence interval on every valuation
- Strict mode: 5-seed outlier rejection
- Built to support the credit decision
Continuous revaluation of the whole portfolio.
Every quarter the AVM revalues the entire mortgage book, recomposes LTV, recalculates RWAs and updates the capital impact — at full coverage, exposure by exposure.
- Quarterly batch cycle over the full book
- Full portfolio coverage
- Recomposed LTV and RWA per exposure
- IFRS 9 SICR early-warning triggers
Capital, compliance and risk. In the same cycle.
An up-to-date collateral value is not a formality: it moves three levers that weigh on the P&L and on the dialogue with the supervisor.
Capital released
By recomposing LTV under CRR Art. 125, exposures on appreciated property migrate to lower risk-weight buckets. Lower RWAs mean CET1 freed — and new lending capacity at the same level of capital.
Provable compliance
Over-compliance with CRR Art. 208, EBA GL 2020/06 and the ECB Supervisory Priorities, with an audit pack built to withstand a Joint Supervisory Team inspection.
Risk seen earlier
Early warning on deteriorating areas, forward-looking triggers for IFRS 9 staging, and a physical-risk overlay for the ECB climate stress test.
From the mortgage book to the audit pack.
One end-to-end cycle, from portfolio ingestion to delivery of the regulatory evidence. Integrates with core systems over REST API or batch.
- 01
Ingestion & matching
The mortgage book is reconciled to the property: cadastral sheet, parcel and subunit resolved into a single coherent entity.
- 02
AVM valuation
The model estimates each property's current market value, with a confidence interval.
- 03
Risk overlay
A tabulated haircut for physical risk — seismic, landslide, flood, subsidence — adjusts the value.
- 04
Capital recompute
Recomposed LTV, CRR Art. 125 bucket, RWA and CET1 impact, aggregated by segment and geography.
- 05
Audit pack
Model card, immutable log, back-test and lineage: the full evidence for inspection.
An AVM built for the supervisor, not just for the pitch.
An XGBoost ensemble and a hierarchical comparable cascade anchored to OMI values, with retransformation-bias correction and a confidence interval on every estimate. Validated out-of-time, retrained quarterly, with continuous drift detection.
Designed around the European regulatory framework.
Every component of the platform answers to a specific regulatory requirement. The valuation is not a black box: it is documented, traced and defensible.
20/35/75% risk-weight buckets by LTV for residential real estate.
Revaluation at regular frequency; statistical methods permitted.
An AVM that is appropriate, granular, back-tested and documented.
Priority 2: collateral valuation and monitoring of real estate exposures.
Technical documentation, human oversight and an immutable audit trail.
Third-party ICT risk management, with a dedicated assurance package.
An audit pack ready for inspection.
On every cycle, the platform generates the full evidence a regulatory inspection requires — not after the fact, but as a native output of the process.
10-year retention · immutable hash chain
- Versioned model card
- Immutable inference log
- Out-of-time back-test
- Drift detection (PSI, KS)
- Comparable documentation
- End-to-end data lineage
Security & governance
Hosting and disaster recovery exclusively on European infrastructure.
TLS 1.3 in transit, AES-256 at rest, HSM-managed keys.
Every inference recorded in an immutable log, kept for ten years.
The bank's data never feeds other clients' models.
Frequently asked
The questions banks ask us.
For significant institutions under direct ECB supervision (SSM) and, more broadly, for any lender with a residential mortgage book to monitor and optimize. Coverage extends to CRE and foreign portfolios as optional modules.
It's a regulatory-grade AVM: documented out-of-time back-testing, an inspection-ready audit pack, an EU AI Act-compliant audit trail and a physical-risk overlay. Not just a value, but the evidence that makes it defensible in front of the supervisor.
Through a synchronous REST API for origination and a quarterly batch for monitoring the entire book, with connectors for the main core systems (SAP RE, Credit Risk systems). Output is exportable in a structured format to the bank's systems.
Exclusively on European infrastructure, with EU-based disaster recovery. The bank keeps full ownership of its data, which is never used to train other clients' models.
The Proof of Value returns a first estimate in four to six weeks on an anonymized portfolio sample, under a mutual NDA. From there the path continues in phases, with an explicit decision gate between each.
Every material change goes through a joint bank–Atlantica Change Advisory Board. The model is retrained and back-tested quarterly, with continuous drift detection and independent validation supporting the bank's Model Validation Unit.