Veros Real Estate Solutions today announced the expansion of GMAC-RFC's PropertywiseSM automated valuation model (AVM) cascade. Propertywise represents GMAC-RFC's proprietary risk strategy for its acceptance of AVMs, based on years of extensive research into AVM performance and validation. Earlier this year GMAC-RFC implemented new policies for the acceptance of Automated Valuation Models (AVMs) and now requires that loans sold to GMAC-RFC on select waived appraisal programs conform to GMAC-RFC's Propertywise specifications. Lenders that use AVMs in this approved manner may also benefit from lower collateral risk and decreased repurchase risk.
The Propertywise AVM model runs on VeroSELECT, the state-of-the-art collateral risk management system developed by Veros. VeroSELECT gives lenders absolute control of collateral risk strategies with the secure selection, acceptance, and management of services, vendors, users and their own proprietary business processes. The intelligent, decision management platform provides access to a full range of collateral risk solutions, including AVM products, Broker Price Opinions, appraisal solutions, collateral fraud tools, prequalification solutions and a host of hybrid products and services. Propertywise AVM strategies are continuously monitored and dynamically adjusted by GMAC-RFC through the use of the VeroSELECT real-time administration system.
"This is exactly the role we expected VeroSELECT to play in the industry," said CEO Darius Bozorgi. "Investors and lenders are becoming more proactive in making their risk strategies available to clients and the market at large. With VeroSELECT, GMAC-RFC can be confident that each client will be using AVMs in the same safe and secure manner and in accordance with their view of risk. Lender clients will get the benefit of increased transparency and lower collateral risk. It's a win-win for all parties."
Veros has been offering the Propertywise AVM model to GMAC-RFC's approved lenders since last year. As part of its effort to responsibly increase AVM acceptance in the secondary market and in light of changing market conditions, GMAC-RFC has elected to lead the industry by linking external AVM selection with its own purchasing guidelines. "GMAC-RFC is looking to expand our use of AVM-backed loan programs," said Susan Allen, Director of Collateral Risk for GMAC-RFC. "In order to do so, GMAC-RFC has opted to use its automated controls for the acceptance of AVMs. As a result, we're able to waive certain value warranties made by lenders selling loans to our company when they have provided us with a Propertywise AVM certificate."
VeroSELECT gained quick acceptance in the industry by making it possible for lenders to set up collateral valuation rule sets for AVMs based on a wide variety of criteria, including LTV, credit, product type, geographic area (county, city, ZIP code, etc.), confidence scores, fraud scores or any number of user-defined variables, such as internal risk or collateral scores. Version 2.0 goes well beyond that by enhancing selection and acceptance criteria and allowing lenders to generate and automate rule sets for the other collateral valuation techniques. In addition, different rule sets can be built and applied to different channels or product types and run simultaneously across various programs or business units.
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.