VeroFORECAST provides a new direction for Servicers and Investors
Mar 17, 2008
Proven forecasting technology gives servicers a reliable glimpse into the future
Santa Ana, CA - March 17, 2008 - Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, recently released its latest, quarterly forecast of the nation's residential real estate markets. Veros has been developing and releasing this forward-looking residential property data on a quarterly basis since October, 2003, having over four solid years of proven and accurate home price forecasting behind them. This type of valuable data is now being analyzed and utilized in servicing applications and decisioning.
The forecasts, based upon the VeroFORECAST models reflect projected market gains and declines for single family residences in most major metropolitan areas and a large number of non-metro areas resulting in coverage of 75 percent of the nation's population. Independently or combined with Veros' Risk-Based Default Management process (that includes traditional and default/REO AVMs as well as market risk scores), these forecasts allow the servicer and investor to quickly determine collateral risk levels and establish a "priority of action" on their accounts, proactively manage likely default exposure, and make more effective decisions about non-performing assets. The forecasted subject value allows the servicer to view the expected change in price for up to 18 months into the future. This permits the servicer to immediately quantify any potential risks as compared to being forced to react at a later point in time.
"Servicers should look for real estate market forecasts that are "econometrically" based," said Dave Rasmussen, senior vice president for Veros. "What this means is the factor that truly establishes the pricing of real estate in any given market is supply and demand, and that factor is not solely affected by what has happened in past real estate market cycles. Value and benefit should be the guiding principles in deciding upon a predictive method for servicing, and VeroFORECAST for servicers and the default management process means a better bottom line."|
VeroFORECAST is highly affordable and available to the servicer on either a transactional application or through a quarterly data subscription. The unparalleled flexibility allows an individual analysis for an individual borrower, providing that "priority of action" to determine the next steps in servicing that borrower. The use of market forecasting enables servicers to incorporate the anticipated value movement for a property into the evaluation of multiple default or loss mitigation scenarios. This analysis affords the servicer options for taking action and effectively reducing the risk of depreciating real estate values, yet enables the servicer to also take advantage of appreciating markets.
Such forecasting can assist servicers in more accurately estimating their portfolio level default exposure. Also, real estate market forecasting can improve a servicer's ability to forecast the impact of interest rate resets from the potential for default perspective as well as on a per defaulted account loss severity perspective. The implementation of VeroFORECAST benefits the servicer with an increase in collections efficiencies, greater loss mitigation, and the ability to provide borrowers more proactive options to remain in their homes. Helping both the servicer and the borrower recognize a pending payment issue and possibly avoid foreclosure means a higher probability of keeping the borrower in the home under scenarios that are more financially realistic for both parties. When a resolution cannot be reached, valuation forecasting provides critical information regarding the most optimal course of action relative to increasing portfolios of non-performing assets.
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.