First Title will offer guaranteed valuation protection for seven years under the FastVal brand, which is effectively insurance against an incorrect AVM property valuation, when valued retrospectively."If the lender provides funds to a borrower who defaults, and the lender goes to sell the property, they may not recoup enough to pay the loan," said Bruce Walker, general manager new products at First Title. "Either the property has declined in value, or where we come into it, the AVM may have produced a value that was too high; with us, the lender does not wear the loss."A full retrospective valuation will be carried out by a qualified independent valuer, with First Title covering the loss."The approximate one off cost for the insurance is $150, which also includes an AVM from a real estate information provider the company has contractual agreements with.A basic premium would provide financial insurance against a property for a retrospective valuation that is more than ten per cent incorrect, with a maximum payout of $500,000, although different amounts can be negotiated during the premium writing process."Once a lender provides us with the retrospective valuation, we have contractual agreements to pay within 30 days."Walker adds that since the product is so new to the Australian market, First Title is currently liaising with lenders and conducting trials."We currently have over 30 lenders as customers, which includes the five major banks, as they are looking at ways to cut down the time and reduce costs in the mortgage valuation process."Walker would not be drawn on volume targets for profitability, but identified their main target market as the five major banks due to potential volumes.The beyond ten per cent cover figure was based on overseas examples, but could potentially be reduced through a negotiated higher premium cost."The FastVal guarantee process is backed by two international insurers with a minimum A rating from S&P and Moody's."First Title is 100 per cent owned by the Fortune 500 company First American, a title insurance company that holds a 38 per cent stake in the ASX-listed real estate information provider RP Data.