Veros releases white paper on industry best practices for analyzing appraisal scoring technology
Document provides strategy for lenders and investors to evaluate automated appraisal risk scoring tools to improve analysis
SANTA ANA, CA (October 20, 2014) — Veros Real Estate Solutions(Veros), an award-winning industry leader in enterprise risk management, collateral valuation services and predictive analytics, today announced the availability of a white paper created to help mortgage lenders and investors understand the best approach to the testing and identification of the optimal appraisal scoring tool for their organization. The white paper is entitled “How to Execute a Meaningful Test of Appraisal Scoring Technology.”
“The days of old school appraisal preparation and paper-based processes are over for property valuations, and while data is abundant to aid in valuation analysis, it must be carefully deployed to avoid pitfalls,” says Adrienne Ainbinder, Veros’ vice president of sales and marketing. “Sophisticated scoring technologies exist in the marketplace today that do this very well, but the industry has not yet arrived at a defined science behind the proper testing approaches. It is critical for any firm who relies on an appraisal’s estimate of value to fully understand how best to evaluate, procure and, ultimately, utilize these tools as we move to a completely digital loan environment,” she explains.
With the costs of compliance layering expense on the origination process, automation is more important than ever to help control costs and manage risk, particularly in valuations. In appraisal scoring, there is not a standardized formula or format among the offerings. While lenders are challenged to evaluate a variety of alternative approaches and methodologies, they also reap the benefit of finding a unique solution that fits their specific needs.
“There is a lot at stake, and creating an ‘apples to apples’ comparison requires a proper testing design,” Ainbinder says. “You don’t want to get too far down the road after adding a scoring technology to the workflow and discover that something is not right. These decisions can impact the risk strategies employed toward regulatory audits and in arming against repurchase risk, so testing is a key part of the due diligence process,” she notes.
To access the document, Best Practices: How to Execute a Meaningful Test of Appraisal Scoring Technology, visit http://pages.veros.com/Appraisal-Scoring-Best-Practices.html
About Veros Real Estate Solutions
Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, uniquely combines the power of predictive technology, data analytics and industry expertise to deliver advanced automated decisioning solutions. Veros’ award-winning products and services are optimizing millions of profitable decisions throughout the mortgage industry, from loan origination through servicing and securitization. Veros provides solutions to control risk and increase profits including automated valuations, fraud and risk detection, portfolio analysis, forecasting, and next-generation collateral risk management platforms. Veros is headquartered in Santa Ana, Calif. For more information, please visit www.veros.com or call (866) 458-3767.