AI-Powered AVM Suitability Tool For Second Mortgages and Home Equity Lending
Gain the best property-level valuation insight with VeroPRECISION™, powered by the Veros Valuation Decision Engine. When you choose VeroPRECISION, the Valuation Decision Engine runs an AVM on a subject property – only after determining the property is best served by automated valuation. If not, VeroPRECSION orders a desktop valuation or appraisal instead, from a provider designated by you, the lender.
Valuation Decision Engine
How AI Powers Smart Valuations within VeroPRECISION
- VeroPRECISION begins by generating a property-level AVM Suitability Score using case-based reasoning, data-driven automation and sophisticated data analysis.
- When an AVM is determined to be the best valuation method, it automatically orders automated valuations from VeroVALUE and Collateral Analytics®’ CA Value MC.
- Leveraging Artificial Intelligence (AI), VeroPRECISION’s then scores the AVMs at a property level (versus state or county level), and returns the more accurate and stronger of the two AVMs in a report with full supporting data analysis.
The Precise Valuation Solution for Second
Mortgages and Home Equity Loans
Various collateral valuation approaches may result in disparities between purchase transactions and non-purchase or refinance transactions. When home equity lenders implement AVMs in production that are based only on purchase transaction testing they can get inconsistent results for HELOC and refinance production. VeroPRECISION is optimized on a case by case basis, ensuring the optimal results for each transaction type.
Next Level AVM
By identifying AVM-suitable properties and addressing accuracy disparities and usage suitability concerns, VeroPRECISION removes outliers from the equation and raises AVM accuracy and usability. Through exclusive use of AVM brands consistently identified as the most accurate, VeroPRECISION delivers the next-level AVM cascade solution.
Sometimes, an AVM is
Not the Solution
When VeroPrecision identifies the subject properties are not the best fit for an AVM, an immediate escalation to one of the following four evaluation options based on your business rules:
- A desktop valuation performed by a certified appraiser
- A desktop valuation performed by a highly trained analyst
- A desktop valuation with exterior inspection performed by a certified appraiser
- A desktop valuation with exterior inspection performed by a highly trained analyst
The Veros AVM
Suitable Score Engine
The Veros AVM Suitability Score looks at the subject property, including the immediate environment, and makes some basic assessments:
- How much does the AVM know about the subject property’s physical characteristics from both public records and MLS data?
- Is the subject property similar to other recently sold properties in the immediate area?
- Are there recent sales and listings for similar properties near the subject?
This is different than the AVM Confidence Score, which measures the degree of variability associated with the point value estimate of the AVM.
VeroPRECISION – The Quest for Constant Improvement
Veros and our customers work together to ensure VeroPRECISION’s effectiveness. In quarterly VeroPRECISION testing reports sent to customers, we detail hit rates and value accuracy for suitable properties versus non-suitable properties. Customers are encouraged to provide the recently appraised values for their subject properties so that Veros can append VeroPRECISION values.
This allows for the comparison of testing performance and actual production performance and is ideal for validating customer’s unique footprint and risk tolerances.
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“Veros continues to accurately predict robust appreciation throughout the overall housing market, which will remain solid and steady well into 2022,” said Darius Bozorgi, CEO of Veros Real Estate Solutions. “The continued year-over-year increase is heavily driven by strong markets in the Western United States. Four of the highest-performing markets are located in Idaho where in-migration continues to fuel housing demand.”
One question that naturally arises is how do hurricanes impact home prices after they hit? The answer may be surprising.
To investigate, we looked at a list of the 20 most expensive hurricanes on record (adjusted for inflation) in the US from the last 32 years.
Watch our Housing Market Insider interview with Veros’ Chief Economist, Eric Fox, and Salt Lake City’s very own Market Expert Dave Robison, ‘Utah Dave’ Robison, to get both the data and the feet on the street insight.