In 2001, housing finance relied on manual, static valuation processes that could no longer meet the market’s rapidly changing demands. Veros helped kick-start a fundamental shift by pioneering a predictive, data-driven framework that transformed how risk and value are quantified across the mortgage industry. While technology, scale, and sophistication have advanced dramatically over the past 25 years, Veros’ mission has remained unchanged in providing state-of-the-art data, analytics, and systems with the highest accuracy and performance.
This steadfast purpose, paired with disciplined innovation, has established Veros as a pillar of stability in the industry. The company has been recognized repeatedly for its technological impact, earning numerous industry honors, including the HousingWire Tech 100 award for 14 years and receiving the MortgagePoint Technology Excellence Award, underscoring the depth of expertise guiding the organization.
“Over the last 25 years, we have provided clarity and consistency in performance that our customers and partners rely upon. Veros has pushed and responded to changes in housing finance, resulting in a safer and more robust system for all stakeholders. We have been blessed with amazing and talented team members and partners who share a common vision. Veros has so much more to accomplish, and we continue to move forward with confidence,” stated Darius Bozorgi, President and Chief Executive Officer.
Redefining Valuation Through Predictive Technology
Veros was founded on the belief that advanced predictive technologies could deliver greater consistency and accuracy to financial services, resulting in better decisions and risk management. That premise was proven by the launch of the VeroVALUE automated valuation model (AVM), in which Veros fundamentally changed how confidence scoring was measured and applied in production environments. Earlier first-generation AVMs provided inconsistent and misleading value estimates and confidence scores. Veros introduced a more disciplined approach by quantifying confidence score performance and delivering consistent valuation performance, setting a new standard for trust and usability in property valuation analytics.
Rather than relying on a single approach to value every property, Veros advocated for a multi-tiered, more nuanced framework that reflects the realities of specific markets, property types, and data conditions. “Accuracy in valuation isn’t one-size-fits-all. That’s why we built VeroVALUE to adapt to the unique conditions that come with every market,” explained Eric Fox, Chief Economist and Senior Vice President, Analytics.
These analytics also translate into how Veros approaches risk management. Following the success of its AVM, Veros quickly launched other property valuation solutions, including neighborhood analytics, Real Estate Owned AVMs, home price indices, and property valuation forecasting. Veros also introduced automated platforms like VeroSELECT, which allows users to manage AVM cascades and the order and delivery of a host of property valuation analytics. Veros continued to advance, exploring the impact of natural disasters on property valuation with Disaster Vision. Historically, disaster risk was managed at the county or zip code level; however, with Veros’ Disaster Vision, risk was managed at the property level, better preparing to assess risk from natural disasters. By clearly highlighting ever-changing volatility, uncertainty, and market stress, Disaster Vision ensures users maintain clarity regarding potentially impacted properties and confidence when risk is most difficult to determine.
Veros’ work in valuation risk management established a principle that continues to guide Veros today – what are the best techniques available right now, and are we using them? That mindset has driven the ongoing adoption of new methodologies, the integration of expanding data sources, and a consistent focus on raising the bar for accuracy and performance. Continuous innovation is the foundation of our industry leadership, driving excellence in both product development and operational efficiencies.
Leading Electronic Appraisal Delivery
During the mid-2000s mortgage market crash, many appraisals were found to be flawed in their valuations; changes were needed in the collateral valuation space. Working closely with the Government Sponsored Enterprises (GSEs) and the Federal Housing Administration (FHA), Veros played a huge role in revolutionizing the appraisal industry by helping to create appraisal data standards, leveraging MISMO for file data collection, and building the technology for electronic data submissions.
In terms of the systems infrastructure for electronic appraisal data delivery, Veros provided the technical leadership required to build, manage, and operate the Uniform Collateral Data Portal (UCDP) and the Electronic Appraisal Delivery (EAD) portal on behalf of and at the direction of the GSEs and FHA, respectively. These platforms enabled the GSEs and FHA to have access to standardized electronic appraisal data, allowing them to identify, analyze, and better manage collateral valuation risk. Essentially, overnight, the GSEs and FHA were able to conduct due diligence on 100% of the loans they guaranteed or endorsed. To date, more than 140 million appraisals have been submitted through the portals, with 80% of total U.S. appraisals flowing through these systems.
This was a major turning point in housing finance, as the appraisal submission portals enabled the GSEs to significantly improve collateral risk-management policies and modernize their rep-and-warrant business model. Shortly thereafter, the U.S. Department of Veterans Affairs (VA) recognized the improvements in collateral risk management and partnered with Veros to enhance their Appraisal Management System (AMS).
Collectively, having access to complete, compliant, and standardized appraisal data, stakeholders could drastically improve modeling and analytics, making collateral risk decisions clearer and measurable early in the mortgage value chain. This foundation allowed deficiencies to be identified and addressed during the loan manufacturing process. It supported advanced valuation risk assessment tools, which has led to more accurate appraisals and a reduction in collateral valuation risk.
These platforms became the foundation for how appraisal data moves through housing finance. Their scale, reliability, and standardization continue to shape how the industry operates today. As the industry now moves from the Uniform Appraisal Dataset (UAD) 2.6 to UAD 3.6, that foundation is proving essential. Before the original UAD 2.6 was implemented, the GSEs collected “virtually no appraisal data,” yet the standardization that followed enabled modern analytics that the industry now depends on. Veros’ long-standing role in building, managing, and supporting UCDP, EAD, and AMS positions the company to actively reduce operational risk for lenders during this mandatory transition.
Next-Generation Solutions and the Future of Housing Finance
As part of its overall strategy, Veros acquired Valligent, an appraisal solutions provider, several years ago. The Valligent product suite includes both traditional and alternative appraisal-related solutions and their derivatives. The combination of Veros and Valligent offerings results in a fully integrated property valuation powerhouse. While this anniversary offers a moment to reflect, the focus remains firmly on the strategic roadmap ahead. Veros continues to push the boundaries of what is possible in valuation technology and related risk management solutions. Immediate next steps for Veros and Valligent include the following advancements.
- VeroVALUE Elite: The latest evolution in the Veros AVM suite, VeroVALUE Elite is a next-generation AVM that integrates AI-driven property condition scoring, enhanced modeling, and updates that deliver higher accuracy and transparency, and is the industry’s first true condition-adjusted AVM with a proven lift in performance.
- VeroSCORE 3.6: The updated and enhanced property valuation scoring tool that evaluates and scores the quality of an appraisal on a fully automated basis. VeroSCORE is already the foundation of the electronic decisioning for a large volume of the nation’s appraisals and has now been re-imagined for UAD 3.6.
- iVALUATION: A highly interactive tool that combines the power of data and predictive analytics with the expertise of an industry professional. It is actively used in quality control, reviews, and Reconsiderations of Value (ROVs), forming the foundation for the future of property assessment.
- Hybrid Appraisal and Virtual Inspection Solutions: Veros and Valligent are investing in a host of intuitive and easy-to-use, high-integrity virtual property valuation and inspection solutions for origination, review, and disaster management applications. Our virtual offerings dramatically shorten property valuation timelines with enhanced insight into underlying property valuation risk.
With these solutions comes a deep level of expertise within the team at Veros and Valligent. Our talented team brings not only technical expertise but also a historical understanding of the industry, enabling forward-thinking innovations. This continuity creates a foundation for trust and consistency, allowing our team to push the boundaries to deliver innovative products and services to the housing finance markets.
Stability through Decades of Change
As Veros celebrates this milestone, it’s important to recognize the team members, clients, and partners who have had made a crucial impact in the past 25 years. Reaching this milestone has been a result of long-term planning, resisting market noise and distraction, and cultivating relationships and partnerships that last.
“Stability has been a crucial point for our leadership from the very beginning. By prioritizing long-term planning and innovation, we have maintained a reputation that our partners and customers can rely on. No matter the volatility of the market, the trust is always there,” emphasized Charles Rumfola, Executive Vice President and Chief Revenue Officer.
Veros will continue to build on the foundation of trust, remaining committed to shaping the future of the industry. It is an honor to move into this next chapter alongside the clients and partners who helped along the way.
