Veros Real Estate Solutions

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by fifteen, Sep 17, 2009.

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  1. fifteen

    fifteen Senior Member

    0
    Nov 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Anybody hear of this? or them? FNMA going to far?

    SANTA ANA, Calif., Sep 17, 2009 (BUSINESS WIRE) -- Veros Real Estate Solutions, an industry leader in enterprise risk management and collateral valuation services, announced it has been selected by Fannie Mae (FNM) as the technology provider for Fannie Mae's Collateral Data Delivery (CDD) system.
    Beginning March 1, 2010, Fannie Mae will require its lenders to submit full appraisal reports in electronic data format prior to loan delivery. In collaboration with Fannie Mae, Veros will be responsible for building, maintaining and supporting the CDD system, as well as handling direct lender integrations with the CDD system.
    "Veros is honored to serve as the technology provider in this significant project to increase appraisal quality across the mortgage industry," states Darius Bozorgi, president and CEO of Veros. "Fannie Mae is taking the leadership position in efforts that are long past due for capturing and analyzing collateral data."
    The implementation of CDD will enable a data-centric approach to better understanding collateral risk. In support of Fannie Mae's requirements for appraisal data submission, Veros is collaborating with Fannie Mae to provide lenders with flexible alternatives to connect to CDD via a direct system-to-system XML integration or via a web-based portal through which appraisals can be submitted either individually or in bulk.
    For additional information on Veros, valuation risk management systems, or the company's diverse analytic product portfolio, visit or call (714) 415-6300. For additional information on Fannie Mae's CDD system and related FAQs, visit .
    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 products and services, integrated into industry leading companies, are now 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 visit or call Veros at (714) 415-6300.

    http://www.veros.com/realestate.html
     
  2. Randolph Kinney

    Randolph Kinney Elite Member

    8
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    You know that lenders have to pass the Veros AVM appraisal test before submitting the loan package.

    AMCs are going to be making more stipulations on the appraisal to explain why their appraisal does not pass the Veros AVM test.

    Lenders are going to be waiting until the appraisal passes the Veros AVM test before funding the loan.

    The borrowers are going to be waiting an extra long time for that loan to close.

    In effect, the appraisal becomes an appraiser assisted AVM. All that data and justification gets fed back into the AVM.

    Oh, don't expect a fee increase for appraisers; if anything, there will be a charge for using the Veros AVM system paid by the appraiser.
     
  3. Diane Lagrou

    Diane Lagrou Junior Member

    0
    Dec 31, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Ohio
    Fifteen & others ~ What is your take on this new info. Data mining? Not having to use appraisers or appraisals?
     
  4. fifteen

    fifteen Senior Member

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    Nov 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    What randolf just said. It's going to cost us to use that system and it's a significant increase in the use of AVM's and ripping our data.

     
  5. Denis DeSaix

    Denis DeSaix Elite Member

    35
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    I'm familiar with Veros. They are an AVM and quality control vendor located in SoCal.
    I have been a client of theirs in the past when we had need to do large portfolio valuation using AVM products. And, they are the host to PMC (Predictive Methods Conference), an annual conference focusing on real estate valuation technology.
    By the way, at every conference of theirs I've attended (four) they have been consistent in their expression that an appraisal by a qualified appraiser is the "gold standard" of valuation. Obviously they provide valuation services as an alternative to or supplement of appraisals.

    The notice of the GSEs moving toward a standardized appraisal delivery process is not new. What may not be well known is that for a while, lenders and the GSEs have been working on a way to standardize the qualitative analysis portion of the appraisal so that the quality rating can be quantified (Good = 5, Average= 3, etc.). The challenge of AVM vendors in using appraisal data for their AVM models is that qualitative components are not standardized (what is "good" from my perspective may be "average" from yours).
    As it stands right now (based on my understanding) it is too labor intensive and not technically practical for a data miner to extract a qualitative rating from appraisal reports and translate them into a quantitative ranking. Once a standardized rating system can be agreed upon, tested and implemented, then appraisal reports will be extremely valuable as far as data sources.

    So, I think the Fannie/Veros announcement is part of the above process.
    Another forumite had posted in an HVCC thread that she attended a recent AI course on the HVCC and the instructor brought up the standardization process was moving forward.
     
  6. Mike Kennedy

    Mike Kennedy Elite Member

    20
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    15-20% +/- valuation variance on a $500,000. property is "reliable" instilling "confidence"?????

    15-20% +/- "" "" " " $250,000. property ????????????????????


    OH ?


    http://www.veros.com/confidence_score.html
     
  7. Howard Bouchard

    Howard Bouchard Sophomore Member

    0
    Dec 16, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    "Appraisers replaced by AMC AVM's : Timeline, less than 2 years." Quoted from above.

    It has already happened you just don't know it yet. That's why most appraisal assignments these days are much more difficult and complex, all the easy ones are AVM/BPO. All in the name of cheap credit for the consumer, but I'd bet there are still plenty of lender fees on the HUD. See thread below.

    http://appraisersforum.com/showthread.php?t=160525
     
  8. Mike Kennedy

    Mike Kennedy Elite Member

    20
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Howard re both the other one and this - it goes to the authorization to utilize "alternative" valuations written into Title XI FIRREA 1989. First step - second step was increasing the DeMinimus to $250000. Considering the CURRENT Median SFR Price is under $200000. (and was back then) - the Lobbyists who own the Subcommitte started dancing their jig 20 years ago and haven't stopped.


    2009 Median Home Price Falls to $169,000, NAR Reports - THERE HAS BEEN NO REDUCTION IN THE DEMINIMUS

    http://blogs.wsj.com/developments/2009/05/12/median-home-price-falls-to-169000-nar-reports/

    1989 http://www.census.gov/const/pricerega.pdf BY REGION

    1989 120,000 159,600 108,800 96,400 139,000 148,800 188,600 130,600 123,100 173,900
     
    Last edited: Sep 18, 2009
  9. mike32716

    mike32716 Junior Member

    0
    Jan 23, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    While Veros has their own AVM and QC products their contract with FNMA is limited to setting up the systems for appraisals to be submitted in the MISMO XML standard. Veros sells risk management tools and is not limited to the real estate industry. I seem to remember reading that there were a couple of other technology providers too. FNMA has their own AVM engine which will get an additional feeding from our MISMO XML compliant appraisals. I doubt that Veros will be getting any kind of advantage over other AVMs unless they steal the XML data. :new_2gunsfiring_v1:
     
  10. john brown

    john brown Sophomore Member

    0
    Nov 26, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    For the last couple of months, I heard from a couple of lenders that an AMC / tech compnay was contacting lenders (sellers to Fannie) to let them know that they were the "preferred" AMC for Fannie Mae and would be building the Fannie Mae Appraisal XML CDD (Collateral Data Delivery) system. Wonder of Wonders.

    Based on the information on veros's public website , there is no indication if this company is SAS-70 Type II audit certified (SEC requirement for publicly traded companies using service providers for significant data), PCI Level certified (data security) or any independent software development certifications such as Software Engineering Institute's (SEI) Capability Maturity Model (CMM) Level 5 rating.

    Anyone dealing in vendor management of this scale of project and especially for Fannie Mae would require the contractor to have all the above qualifications, for a prior considerable period of time, as part of their basic due diligence. Wonder which other software development firms were invited, if any ?

    Interesting developments .... Watch and wait I guess.
     
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