Veros Develops VeroPACE to Help PACE Lenders Comply with 2018 Regulation

Feb 28, 2018

New Veros product simplifies meeting multiple-AVM requirement contained in newly enacted California laws AB-1284 and SB-242

Santa Ana, Calif. – February 28, 2018 – Veros Real Estate Solutions (Veros), a leading provider of data, analytics and technology for the mortgage banking industry, has developed a solution for lenders specializing in PACE (Property Assessed Clean Energy) loans in the state of California, where new compliance requirements went into effect on January 1, 2018.

VeroPACE™, available through the VeroSELECT™ ordering platform, will generate, analyze, rank, and report the multiple Automated Valuation Models (AVMs) now required for PACE lending by California State Assembly Bill 1284 and the companion State Senate Bill 242.

"The passage of this legislation significantly changed the valuation process for PACE loans, which are used to finance greater energy efficiency in homes,” said Veros VP of Sales Rob Walker. “Historically lenders could process a PACE loan in California using the results of a single AVM, but they now need three AVMs and must use a new method of calculating the final value."

AB 1284 intends to enhance PACE underwriting by requiring lenders to obtain the three AVMs from a third-party vendor, then choose the one with the highest confidence score and calculate the midpoint of that AVM's high-low value range. The resulting value, combined in a report with data from the three AVMs, becomes the valuation submitted with the PACE loan application.

"Ordering three AVMs on the same property can be difficult," Walker added. "And because different AVM providers have different methods of producing confidence scores and values, the mid-range requirement has presented some significant challenges for many PACE lenders. Also, if lenders cannot get three AVMs, they have to get an appraisal, which will add time and cost to the loan application process. To combat this, lenders need to achieve high AVM hit rates."

"The good news for PACE lenders who are struggling with this new compliance requirement is that VeroPACE handles the entire process for them," said Luke Ziegenmeyer, Director of Product Management at Veros. "And, if need be, we have an optional add-on for VeroPACE users that can facilitate the request and delivery of appraisals as well."

When VeroPACE is ordered through the VeroSELECT platform, a single data call is made, which generates a "cascade" through which up to 10 AVMs may be run to increase the likelihood of getting a hit. The VeroSELECT system stops requesting AVMs once it has received three valid hits. VeroPACE then determines the AVM with the highest confidence score, calculates the average of its high and low values, and returns it to the lender in a standardized data format. VeroPACE also generates a coversheet with all the data elements that can be put in a file of supplemental information.

About PACE Loans

According to the Energy Efficiency and Renewable Energy Office of the US Department of Energy (DOE), PACE was created as a "mechanism for financing energy efficiency and renewable energy improvements on private property” – either residential or commercial (C-PACE). PACE programs allow the local jurisdictional authority to fund the upfront cost of energy improvements that are then paid back over time by the property owners.

PACE lenders interested in a demonstration of VeroPACE, or any lender interested in a demo of the VeroSELECT ordering platform, can request a personal demo or more information by calling 866.458.3767 Option 2, or by emailing

About Veros Real Estate Solutions
Mortgage technology innovators since 2001, Veros is a proven leader in enterprise risk management and collateral valuation services. The firm combines the power of predictive technology, data analytics, and industry expertise to deliver advanced automated solutions that control risk and increase profits throughout the mortgage industry, from loan origination to servicing and securitization. Veros’ services include automated valuation, fraud and risk detection, portfolio analysis, forecasting, and next-generation collateral risk management platforms. For more information, visit or call 866-458-3767.

Media Coverages / Sources 

DS News Industry Pulse
The MReport
MBA Newslink
National Mortgage Professional Magazine

Media Contacts
Darcy Patch
Veros Real Estate Solutions
VP of Marketing
714.415.6300, option 6


Category: Press Releases