Veros Real Estate Solutions announced today the availability of property-specific Disaster Data in conjunction with its VeroVALUE AVM reports and portfolio review services. In regions declared as disaster areas the new data set will allow lenders, servicers, appraisal management companies, and other mortgage transaction participants to determine if a U.S.-based residential property has been directly affected.
Today FEMA Disasters are declared at the county level, meaning the entire county is declared a disaster, even though it only affects a portion of the properties located within the region. As a result, all properties within the county are flagged as being in a disaster area, which halts loan funding. Since most mortgage lenders serve a broad or even national geographic area, they have limited ability to truly know whether or not a specific property is impacted by a disaster. Veros can now eliminate this challenge by identifying disaster area impact at the parcel level.
Using satellite imaging and data analytics, Veros’ initial release of this new tool delivers the information in two ways: on a “match and append” basis for portfolio review use or within the VeroVALUE AVM report on a per property basis. The match and append method indicates when a specific property is in the disaster area by matching the location and then appending the disaster data with one of several tiers of confidence. It then delivers a granular result that is much more specific than the county level information commonly used by lending industry participants today.
“With the release of this new data source we can now provide our customers with accurate property-specific disaster data, allowing them to quickly assess whether or not properties have been impacted by the disaster,” explained Veros’ Director of Product Management Luke Ziegenmeyer. “Additionally, our data is continually updated as the disaster unfolds, ensuring that our customers are always making their risk-based decisions with the most current information.”
Property-specific disaster monitoring data is available for the majority of declared disaster areas and includes hurricanes, earthquakes, wildfires, volcanoes, tornadoes, floods, storm surges and tsunamis.
For loan origination, before funding can occur lenders need to clear the property to verify that it’s not damaged. VeroVALUE AVMs, enhanced with disaster data, enable them to do this. In the servicing and default area, it will help minimize loss severity by identifying potential default scenarios before they happen. Servicers that manage GSE- or FHA-funded loans will have the ability to proactively identify and assess disaster-related risk. As the largest investors in residential real estate, the GSEs and FHA benefit as well, as they lend everywhere and are therefore subject to the most exposure.
“This new component to our VeroVALUE Automated Valuation Model has the potential to be of tremendous benefit to everyone from lenders and servicers to the GSEs, government agencies and capital markets firms,” said Veros President and CEO Darius Bozorgi. “It’s part of our ongoing commitment to provide innovative solutions that support the lending industry’s need to streamline processes, mitigate risk and create cost efficiencies.”
If there is likelihood or certainty that the property was affected by a disaster, Veros offers onsite inspection and photographic documentation with its VeroPHOTO+Property Condition Report (PCR). VeroPHOTO+ provides “laser focus” assessment of the property. Whether for a home equity line of credit, reassessing the collateral underlying a loan, or any other purpose, VeroPHOTO+ helps lenders quickly gauge disaster impact and the extent to which further due diligence may be necessary.