Veros Real Estate Solutions, a developer and distributor of innovative mortgage technology, created VeroPRECISION as a superior valuation alternative to traditional AVM approaches, with particular benefits for Appraisal Management Companies (AMCs) and the home equity lending space.
VeroPRECISION is the first decisioning engine that works as an AVM forerunner, determining a subject property's suitability for AVM analysis prior to running the AVM. If it determines the property is suitable for AVM use, it immediately initiates the running of two of the industry's top-rated AVMs, delivering the more accurate of the two.
Where an AVM is deemed unsuitable for use, VeroPRECISION forwards the property valuation request to a preselected traditional appraisal method. This not only accelerates the valuation process, but saves the lender money as well.
“VeroPRECISION gives AMCs and other valuation providers that support home equity lending applications a way to optimize and improve their property valuation analysis processes,” said Veros VP of Sales Robert Walker, CMB CMT. “Too often, AMCs have been required to run a lenders' preferred AVM models sequentially through a cascade in order to maximize hit rates. Unfortunately, this often compromises accuracy, as not all subject properties are good candidates for AVM analysis.”
VeroPRECISION uses decisioning logic, artificial intelligence and machine learning to create AVM suitability functionality that boosts valuation accuracy beyond anything achievable by any AVM or AVM cascade available in the market today. A top-tier AVM typically has an accuracy rate, when compared to recent appraisals, of about 65% nationally. In a test of 30,000 observations per month over a 12-month period, VeroPRECISION achieved a valuation accuracy level of over 75% nationally by limiting rendered values to properties deemed unsuitable for AVM use.
“VeroPRECISION takes the guesswork out of the valuation process by identifying upfront whether or not a property is suited for AVM use. As a result, lenders and other stakeholders can rest assured that the property values they receive are highly accurate,” Veros SVP of Operations David Rasmussen said.
Looking ahead, Veros’ biggest opportunity is leveraging its data and analytics in combination with other data resources and artificial intelligence to create better solutions for the industry’s valuation-centric needs. These products should help Veros resellers – and especially AMCs – streamline processes and gain operational efficiencies, while reducing costs and minimizing risk.
With ongoing changes in the mortgage and real estate industries, such as the potential raising of appraisal waiver limits and rethinking the use of traditional appraisal forms, Veros is uniquely poised to lead the way with innovative new ways to assess and value properties.
For example, in February the company began augmenting its VeroVALUE AVMs with natural disaster data, which allows customers to get expedited updates on how natural disasters affect individual parcels. The Disaster Data analysis tool will be able to flag which pieces of residential real estate assets are directly affected and attach values to those properties so that financial service providers can better determine changes in value, if any, based on the asset’s condition following the disaster.
“Veros customers view the company as a partner that is willing to work with them to create solutions that address their concerns and needs,” Veros President and CEO Darius Bozorgi said. “Our evolving suite of products ultimately enhances the experience for everyone — lenders, AMCs and their customers.”
Darius Bozorgi, President and CEO
As a co-founder of Veros, Darius is a national leader in valuation, predictive analytics and decision-support technology applications. Under his leadership, Veros has earned numerous awards and recognitions for innovation and leadership.
David Rasmussen, SVP, Operations
David leads the operational logistics of Veros' numerous valuation analytic and system strategies. Over the years, he has contributed significantly to Veros' advancement of mortgage-related enterprise risk management systems and collateral valuation services.
Robert Walker, CMB, CMT, VP, Sales
Robert is responsible for leading the sales team and market strategy and for driving innovation and creating a disruptive force in the market. He has 20+ years in the analytics and AVM space and has a solid reputation for product innovation and market insights.