Veros, a developer of enterprise risk management, collateral valuation, and predictive analytics services, 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 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.
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 VeroPRECISION Valuation Decision Engine is available through VeroSELECT, 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.
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.