Veros Real Estate Solutions, a leading developer of enterprise risk management, collateral valuation, and predictive analytics services, announced that it has partnered with Valligent to provide a complete solution in collateral valuation and analytics that will enable lenders to cut costs and increase operational efficiency, Veros announced in a press release.
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 percent to 80 percent 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 release said.
According to Veros, the 20 percent to 30 percent 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 analysts or appraisers, based on each client’s pre-determined preferences.
In cases where VeroPRECISION instantly deems a property appropriate for AVM valuation, the release said, 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.
“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,” Veros Sales Vice President Robert Walker said in the release. “By partnering with Valligent, we have given VerosPRECISION a seamless, integrated fulfillment process that takes it far ahead of any other AVM service.”
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.
“This is much more than a one-stop service that covers valuation reports for the full spectrum of home equity lending needs,” Valligent CEO and chief valuation strategist Jeremy McCarty said. “It’s also a way for lenders to ensure that their valuation processes are fully compliant with all of the related regulations.”