Veros CIA Report Provides Effective Tool for Managing Enterprise Collateral Risk.
SANTA ANA, Calif. -- The Collateral Integrity Analysis product that Veros released in October of last year has proven more effective at managing enterprise collateral risk than many in the industry anticipated. The new tool utilizes the latest technology to scan, detect and identify high-risk properties and then provides lenders with easy to use reports and scores with low frequencies of costly false positives. Lenders are finding that the CIA report actually replaces up to four other products that lenders often purchase in an attempt to manage the collateral risk, including the risk of fraud, they face daily.
The Veros CIA report is actually four reports in one product, (1) a risk report that provides highly predictive scores for the subject property, the market and the collateral as a whole; (2) a complete transaction history report for the subject property; (3) a comparative sales report with up to 40 comparable properties; and (4) a complete market analysis.
"Risk managers in the mortgage industry are beginning to realize the power that the Veros Collateral Integrity Analysis product offers. Hundreds of data elements are analyzed by Veros' proven computer models to provide the very best indicators of collateral fraud and risk available today," said Darius Bozorgi, CEO of Veros. "Our team works with each client to enable them to factor the scores into their automated decisioning, allowing them to gain operational efficiencies while more effectively managing collateral risk."
Despite the vast amount of information provided in the report, the CIA format makes it easy for lenders to focus on the information that is most critical to them, such as scores that more accurately predict EPDs. CIA is a multi-page report returned as an HTML file with hyperlinks that allow lenders to quickly move to the desired section of the report. CIA data is also available via system-to-system interfaces in industry standard XML formats.
Instead of just returning a simple warning light to indicate that fraud may be present in a deal, causing it to drop out of automation and slow down the mortgage process, CIA provides an in-depth analysis that goes well beyond the subject property itself. By looking into the subject property and the market separately, Veros is able to predict the presence of fraud much more accurately, reducing costly false positives that force lenders to incorrectly scrutinize legitimate and profitable loans.
CIA combines subject property and market environment factors into a single collateral score that tells lenders at a glance how much risk is inherent in the deal. If the data indicates that fraud may be present, the CIA report will direct lenders to the most likely source of the fraudulent information, further reducing the time spent investigating flagged loans.
"Just pointing out the possibility of fraud is not enough. False positives cost lenders a tremendous amount of money in terms of lost opportunities as well as lost time and resources that could better be applied to closing more profitable loans," said Bozorgi. "Quality assurance personnel and risk managers need to know why the model has returned a score that indicates potential fraud and how to uncover it with the least amount of human time and labor."
Finally, CIA goes beyond any other tool used to detect fraud and risk by both investigating historical data and by factoring in a collateral valuation forecast for the next 12 months. The likely future value of the collateral will have an effect on the overall risk inherent in the deal, but only Veros' CIA takes it into account. Three years of testing have indicated that Veros' forecasting models are incredibly accurate and consistently predict the direction and amount of changes in home values, down to the ZIP code level.
Bozorgi said, "Lenders are finding that the many data points considered by our model, combined with our proven forecasting ability, make this a perfect tool for managing overall collateral risk."
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 and secured valuations, fraud and disaster risk detection, portfolio analysis, forecasting and next-generation collateral risk management platforms. Veros is headquartered in Santa Ana, Calif. For more information visit www.verovalue.com.
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|Date:||Feb 5, 2007|
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