Technology to Help Servicers Automate Valuations

Risk management and collateral valuation services vendor Veros Real Estate Solutions has added new capabilities in its VRM (Valuation Risk Management) platform that allow servicers to automate several time-consuming processes as they struggle to deal with rapidly expanding delinquencies. Specifically, the VRM platform is a fully automated tool that enables servicers to create customized valuation workflows and monitor the status of property valuations across entire servicing portfolios.

Currently, servicing personnel must take manual steps to determine that valuations are timely and accurate, as well as interpret results, trends and overall quality of the information received. Veros' VRM automates these processes and adds additional layers of valuation analysis that enhance decision-making capabilities when dealing with delinquencies, structuring modification alternatives and formulating payment plan scenarios. By streamlining these steps, servicers are able to handle significantly greater volumes with the same numbers of full-time equivalent employees.

"VRM is a breakthrough in servicer productivity tools," says David Rasmussen, Veros' senior vice president of sales. "Any valuation product, whether a full appraisal, an AVM or a BPO, can be ordered at set delinquency milestones with criteria based on rules that authorized users can customize as needed. Their criteria can include virtually any variable, such as property type, price tier, location, or even routing preference." He notes that VRM's analytics can be automated as well, supplementing the valuations received with additional layers of information and giving important perspective for servicing decisions like modification parameters.

One example currently being used by several of the country's largest servicers is the Veros Collateral Integrity Analysis report, which provides market risk data and analysis to augment other valuation tools ordered through the Veros platform. "The valuation can be tied to a multi-dimensional CIA risk report to vastly improve the relevance and quality of the information," explains Mr. Rasmussen. "This capability is becoming increasingly valuable as servicing clients are seeing the need to pull valuations more frequently in step with rising delinquencies and look more closely at their exposure to collateral risk," he says. "We are approached by companies struggling with exponential rises in delinquency rates and simply can't manage the process with existing staff. We help them not only manage it," he notes, "we help them improve it."