Lenders stand to cut costs in home lending with expedited, cost-saving services with high, verifiable confidence scores
Santa Ana, Calif. – March 20, 2018 – Veros Real Estate Solutions (Veros®), a leading developer of enterprise risk management, collateral valuation, and predictive analytics services, announced today that it has partnered with Valligent, an innovator in non-traditional appraisals and appraisal review services, to provide a complete solution in collateral valuation and analytics that will enable lenders to cut costs and increase operational efficiency.
The companies’ services will be integrated through VeroPRECISION™, the next-generation AVM decisioning product Veros introduced last October. VeroPRECISION uses sophisticated data analysis to first determine a subject property’s suitability for an automated valuation model (AVM). Independent testing shows that, while 70% to 80% of property valuations are best handled by AVMs, the balance require hands-on analysis through an alternative, such as a desktop, drive-by, or traditional appraisal.
The 20% to 30% of subject properties determined more appropriate for an alternative to an AVM can be automatically forwarded to Valligent, which will provide a desktop valuation performed by one of its own highly trained analysts or appraisers, based on each client’s pre-determined preferences.
In cases where VeroPRECISION instantly deems a property appropriate for AVM valuation, those customers will immediately receive one of the industry’s top performing AVMs chosen specifically for the particular subject property. Based upon machine learning in a production environment, the VeroPRECISION decision engine determines the most accurate valuation at the subject property level. Unlike traditional cascade approaches that employ county level look-up tables, VeroPRECISION makes its AVM determinations at the specific property level.
A ‘huge benefit’ to home equity lenders
Integrating Veros and Valligent technology is expected to be of special interest to home equity lending, where HELOCs have grown as a share of lending business in recent years.
“With rising home prices increasing the amount of available equity, and rising mortgage rates making a new purchase less attractive, homeowners are increasingly choosing to remain in and remodel their homes,” said Robert Walker CMB, CMT Vice President of Sales at Veros. “By partnering with Valligent, we have given VerosPRECISION a seamless, integrated fulfillment process that takes it far ahead of any other AVM service.”
“This is much more than a one-stop service that covers valuation reports for the full spectrum of home equity lending needs,” added Jeremy McCarty, Valligent CEO and chief valuation strategist. “It’s also a way for lenders to ensure that their valuation processes are fully compliant with all of the related regulations.”
The VeroSELECT ordering platform
The VeroPRECISION Valuation Decision Engine is available through VeroSELECTSM, Veros’ vendor-agnostic, single-enterprise management platform, which provides access to a comprehensive suite of innovative collateral risk solutions from 10 vendors designed to help lenders best assess collateral values at origination and across existing portfolios. In addition to VeroPRECISION and the VeroVALUE suite of valuation products, VeroSELECT offers AVM Cascade Management, VeroBPO Broker Price Opinions, VeroPHOTO Plus: Property Condition Reports, and its proprietary, best-in-class valuation forecasting tool, VeroFORECAST™.
“VeroPRECISION is a game changer for the home equity lending industry, both from a compliance and performance standpoint,” Walker said. “We said that it is the ‘cure for the common cascade,’ because rather than valuing properties based on broad geographic regions where inaccuracies will often occur, we first determine whether or not each property is a good candidate for an AVM.
“Our partnership with Valligent means that for the 20% to 30% of properties for which an AVM may not be the optimal solution, our home equity lending customers now have access to a complementary service with nationwide reach, providing a complete, cost-effective valuation solution.”
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About Veros Real Estate Solutions
Mortgage technology innovators since 2001, Veros is a proven leader in enterprise risk management and collateral valuation services. The firm combines the power of predictive technology, data analytics, and industry expertise to deliver advanced automated solutions that control risk and increase profits throughout the mortgage industry, from loan origination to servicing and securitization. Veros’ services include automated valuation, fraud and risk detection, portfolio analysis, forecasting, and next-generation collateral risk management platforms. Veros is also the primary architect and technology provider of the GSEs’ Uniform Collateral Data Portal® (UCDP®) and other proprietary digital data delivery portals. For more information, visit www.veros.com or call 866-458-3767.
Valligent has developed fully compliant solutions for lenders throughout the country. They include Equity Line Valuation solutions, Line Management alternatives, and Risk Mitigation strategies. It combines the top AVM options available in the market with Valligent’s innovative, Interagency compliant alternative valuations, resulting in the highest level of confidence available within the Equity Lending arena. In addition, Valligent has developed proprietary technologies that combine to provide extremely efficient workflow solutions resulting in significant savings of both time and cost. For more information visit www.valligent.com, or call 877-490-0390.
Veros Real Estate Solutions
VP of Marketing
714.415.6300, option 6