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VeroPACE AVM

VeroPACE

VeroPACE™

For lenders specializing in Property Assessed Clean Energy (PACE) loans

VeroPACE™ helps lenders who specialize in California’s Property Assessed Clean Energy loans expedite the PACE loan process and meet any new regulations that affect the collateral valuation process.

Available through VeroSELECT™,  VeroPACE simplifies meeting the multiple-AVM requirement and the confidence score testing.

Addressing The Regulatory Impact of PACE

In January 2018, California State Assembly Bill 1284 and companion State Senate Bill 242 were enacted to add additional requirements for lender’s handling PACE financing.

That legislation requires that PACE loans have:

  • Three Automated Valuation Models (AVMs), obtained from a third-party vendor, instead of the single AVM previously required
  • Confidence scores for all three AVMs that are averaged into a single score based on a specific calculation formula

The resulting value, combined in a report with data from the three AVMs, becomes the valuation submitted with the PACE loan application.

VeroPACE™ Makes it Simple

When VeroPACE is ordered through VeroSELECT, a single data call is made, generating a “cascade” through which up to ten AVMs may be run. This greatly increases the likelihood of obtaining the necessary three hits. VeroSELECT stops requesting AVMs once it has received three valid hits. If ten AVMs do not produce the required three, PACE lenders can use VeroSELECT to immediately order evaluations and full appraisals, and quickly turn around a complete valuation solution.

VeroPACE Solves Pace Lending Challenges

Different PACE Automated Valuation Models (AVM) providers have different methods of producing confidence scores and values, the process of identifying the AVM with the highest confidence score and then calculating the mid-range value has presented some significant challenges for many PACE lenders.

VeroPACE addresses these challenges by handling the entire valuation process on their behalf. It begins by taking the three valid AVM hits and determining the one with the highest confidence score. By calculating the average of its high and low values, it returns that required score to the lender in a standardized data format.

VeroPACE also generates a coversheet with all of the supporting the data elements, which can be retained with the loan file to create a paper trail.

PACE lenders interested in a demonstration of VeroPACE and VerosSELECT,  contact us today. 

Interested in Learning More?

To Speak To Our Sales Team:

866-458-3767 Option 2

Features

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2024 Update: Does Historical Redlining Influence Today’s AVM Estimates?

Tune in to RiskWire webcast episode #14 featuring Eric Fox, Veros’ Chief Economist, and Reena Agrawal, Research Economist, as they delve into the intricate dynamics between Automated Valuation Models (AVMs) and historical redlining. In this episode, the economists present findings from their 2024 updated research study, “Does historical redlining influence today’s AVM estimates,” which now includes data from five additional metropolitan areas across the United States: Boston, Chicago, Pittsburgh, Birmingham, and Austin.

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Introducing RiskWire.com: A Go-To Source for Housing Market Analysis and Economic Insights

Veros Real Estate Solutions (Veros®) is proud to unveil RiskWire.com, an innovative web platform poised to emerge as the premier destination for timely real estate news, in-depth economic analysis, and valuable perspectives on the ever-evolving landscape of U.S. housing market. Powered by Veros, RiskWire.com is a go-to source for up-to-the-minute insights into key areas such as housing market indicators, the housing market hotness index, economic trends, local market dynamics, forecasts, and transformative technologies.

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2024 Study Update on “Does Historical Redlining Influence Today’s AVM Estimates”

In our ongoing commitment to transparency and equity, Veros Real Estate Solutions (Veros®) is pleased to present the latest update to our research study, “Does historical redlining influence today’s AVM estimates,” authored by Reena Agrawal, Veros’ Research Economist, and Eric Fox, Veros’ Chief Economist and Senior Vice President of Analytics.

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