Lenders and other mortgage stakeholders looking to stay compliant with their regulators’ requirements governing the use of automated valuation models (AVMs) will find the task easier with the selection of Veros Real Estate Solutions as the distributor of ComplianceTRACK by AVMetrics. ComplianceTRACK is the industry’s most inclusive “cascading” preference table combining the expert analysis and validation of AVMs into logical ordering rules, and is complete with documented due diligence, user reporting and validation required to meet regulatory expectations.
Simi Valley, Calif.-based AVMetrics, renowned for its comprehensive testing, validation, auditing and documentation of all commercially available residential AVMs, selected Veros as its distributor after a lengthy RFP process which drew responses from AVM distributors throughout the industry.
Veros, a provider of collateral valuation management software and tools for the real estate and mortgage markets, will distribute the AVMetrics offering via a web-based interface, system-to-system XML integration or portfolio (batch) order. In order to maintain the necessary objectivity of the preference table, Veros, also an AVM developer, remains completely removed from the AVMetrics evaluation, maintenance and rules management processes.
“The validation of automated valuation models, including those of our competitors, is good for Veros and good for the industry,” said Veros CEO Darius Bozorgi. “ComplianceTRACK is exactly the kind of tool the industry needs to satisfy the requirements of regulators for independent testing, analysis and monitoring of AVMs,” he notes, “and without the often prohibitive additional expense of supporting internal departments and other compliance-related measures that many mid-size and small lenders simply cannot afford.”
Guidance released over the past two years from five regulatory agencies (OCC, FRB, FDIC, OTS and NCUA) has provided parameters around the acceptable use of AVMs, expectations for AVM testing, validation and continual monitoring of all models utilized. AVMetrics’ expert team puts all industry AVMs under the microscope and provides updated performance assessments to create a hierarchy of AVMs that best suit the changing needs of the industry.
“We have observed a high degree of confusion as to what is required to document compliance, and have a keen understanding of the lender’s limitations in conducting a proper, objective AVM review,” said Lee Kennedy, AVMetrics founder and managing director. “Amid the battle between constraints and expectations, we’ve developed ComplianceTRACK as a means to provide our objective analysis and the documentation necessary to support an audit with a transaction-based solution that is literally turn-key.”
