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.
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