Veros promotes transparent AVM testing policies
Nov 26, 2007
AVM validations to keep pace with current market needs for unbiased test results
Santa Ana, CA - November 26, 2007 - Santa Ana, CA based Veros Real Estate Solutions, the industry leader in collateral risk analytics and decision systems, announced updates of Veros' AVM testing policies for its industry leading VeroVALUE AVM. Standing by its firm commitment of accuracy and proper understanding of all of Veros' products, Veros' testing policies are designed to ensure open communication and the transfer of transparent and accurate information between all parties.
Veros asserts the understanding and proper prioritization of critical test data, such as the definition and calculation of accuracy, confidence score correlation to accuracy, ranking functions, gross hit rates, and effective hit rates along with appropriate confidence score thresholds, and other performance measures are essential to making decisions related to the appropriate use of AVMs as a stand alone solution or within an AVM cascade.
"The validation landscape for AVMs has changed significantly over recent history," said Darius Bozorgi, CEO of Veros. "Today, numerous parties may be involved in any given validation of automated risk tools. These stakeholders have always included the end-user lender or investor and the AVM developer, but now increasingly involve third-party participants such as testing consultants, resellers, distributors and cascade providers. It is critical that testing and validation policies evolve to keep up with changes in the market and ensure that AVM validations are equally accessible to all participants in the most transparent fashion so mortgage stakeholders can make the best decision for their particular organization."
Veros provided the first industry whitepaper on AVM testing and validation that is still largely regarded as the authority on the subject and is available upon request. Maintaining its AVM leadership role, Veros has always strongly encouraged the testing of VeroVALUE along with all other AVMs. Toward this end, Veros supports universal AVM testing that is free of charge for all participants provided certain minimum standards of transparency and communications are met. Veros actively participates in numerous AVM validations on a weekly basis and typically returns all test results to the appropriate organization within 24 to 72 hours depending on the requirements of the test.
"With AVM usage, applications and volumes at all-time highs, today's market demands that the best and most transparent testing practices are applied," adds David Rasmussen, SVP of Veros. "The days of any entity, the AVM developer or a third-party AVM reseller or cascade provider, withholding key metrics and/or communication from other vested participants are over. Mortgage participants need to make sure that they are getting the most accurate and unbiased validation data available. Otherwise, they will find out after the losses have mounted that their real-world production experience does not match expectations from a less than objective AVM test."
Frequent and impartial AVM testing not only benefits end-users with the necessary understanding of AVM performance across a myriad of varying attributes, applications and risk thresholds, but also benefits AVM developers, testing consultants, regulators and other third-parties with further insight to current performance metrics as well as customer and market needs. AVM developers need the feedback and interaction about how their individual AVM(s) performed in the absolute and on a relative basis. Only by understanding how AVM products are found to be strong or weak across a number of different and evolving performance categories can the industry and AVM providers, in partnership, improve upon these increasingly valuable and objective offerings for the real estate industry. Please contact Veros for further information on Veros testing policies, to start your own validation or to request a copy of Veros' AVM testing and validation whitepaper. About Veros Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, uniquely combines the power of predictive technology, data analytics and industry expertise to deliver advanced automated decisioning solutions. Veros products and services, integrated into industry leading companies, are now optimizing millions of profitable decisions throughout the mortgage industry from loan origination through servicing and securitization. Veros provides solutions to control risk and increase profits including automated and secured valuations, fraud and disaster risk detection, portfolio analysis, forecasting and next-generation collateral risk management platforms. Veros is headquartered in Santa Ana, CA. For more information visit www.veros.com.
About Veros Real Estate Solutions:
Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, uniquely combines the power of predictive technology, data analytics and industry expertise to deliver advanced automated decisioning solutions. Veros products and services are optimizing millions of profitable decisions throughout the mortgage industry, from loan origination through servicing and securitization. Veros provides solutions to control risk and increase profits including automated valuations, fraud and risk detection, portfolio analysis, forecasting, and next-generation collateral risk management platforms. Veros is headquartered in Santa Ana, California. To order the VeroFORECAST update or receive information on other Veros analytic products and systems, visit www.veros.com or call (866) 458-3767.