Veros Real Estate Solutions, a leading developer of enterprise risk management, collateral valuation and predictive analytics services, and Accurate Group, a leading provider of technology-driven real estate appraisal, title data and compliance services, recently entered into a partnership that they say will have positive implications for home equity lenders and others in the mortgage industry.
Through the partnership, the companies hope to provide a complete, end-to-end collateral valuation and analytics solution that will enable home equity lenders and other mortgage industry participants to cut costs and increase operational efficiencies, according to an Accurate Group press release.
Both companies’ services will be integrated through Veros’ VeroPRECISION valuation decision engine, the industry’s first property level, next-generation AVM decision logic technology. VeroPRECISION analyzes data to determine a subject property’s suitability for an automated valuation model (AVM).
Independent testing shows that although between 70 and 80 percent of property valuations are correctly appraised through automated appraisal models (AVMs), the balance requires hands-on analysis through an alternative, such as a desktop, drive-by or traditional appraisal, the release states. The 20 to 30 percent of subject properties determined more appropriate for another valuation source can be automatically upgraded to a ValueNet appraisal delivered by Accurate Group. ValueNet combines up-to-date desktop appraisal technology with the hands-on expertise of local appraisers to deliver a more accurate appraisal at a lower cost than traditional methods.
In cases where VeroPRECISION immediately deems a property appropriate for AVM valuation, those customers will promptly receive one of the industry’s top-performing AVMs. Based upon machine learning in a production environment, the VeroPRECISION decision engine determines the most accurate valuation at the subject property level.
“With the combination of rising interest rates and rapidly escalating property values, homeowners are increasingly choosing to remain in and remodel their homes and tap available equity through a home equity line of credit rather than traditional refinancing,” Veros Vice President of Sales Robert Walker said in the release. “By partnering with Accurate Group to provide comprehensive home equity appraisal services, we have created a seamless, integrated solution that streamlines the origination process while also effectively mitigating valuation-related risk.”
“Accurate Group is committed to delivering our clients the fastest, most accurate property appraisal on every order,” Accurate Group Executive Director of Valuations Frank Guarnera said. “By partnering with Veros to leverage VeroPRECISION, we are able to more quickly identify the best appraisal approach, saving valuable time in responding to lender and servicer requests. Our combined approach reduces turn time and cost, while also improving the quality of property valuations.”
The VeroPRECISION Valuation Decision Engine is available through VeroSELECTSM, Veros’ vendor-agnostic, single-enterprise management platform, which provides access to a comprehensive suite of more than 25 innovative collateral risk solutions from 15-plus vendors, helping lenders best assess collateral values at origination and across existing portfolios. In addition to VeroPRECISION, Accurate Group’s ValueNet suite and the VeroVALUE suite of valuation products, VeroSELECT also offers AVM Cascade Management, VeroBPO Broker Price Opinions, VeroPHOTO Plus: Property Condition Reports, and Veros’ proprietary, best-in-class valuation forecasting tool, VeroFORECAST.
“From a compliance and performance standpoint, VeroPRECISION is a game changer in the home equity lending space,” Walker said. “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. And, with the introduction of Accurate Group’s ValueNet suite of specialized appraisal products, our home equity lending customers will have access to a complete, cost-effective valuation solution that will enable them to reduce expenses and shorten cycle times for the 20 percent to 30 percent of properties for which an AVM may not be the optimal solution.”