Wednesday, November 01, 2006

Veros: Launches new tools at MBA

There are a number of good analytical developers in the industry that started out working in the mortgage business and then decided to develop some software to analyze the business. Veros is not one of these players. Instead of business people who became code developers, this is a firm of scientists that chose to apply their predictive and analytical abilities to the mortgage business, but who also do great work in other industries.

This is the company behind the annual Predictive Methods Conference, a show that goes out of its way to present methods and models from outside the industry in order to provide valuable new insights to the people working here. The company made two big announcements at the 93rd annual MBA Convention.

First, it upgraded its VeroSELECT AVM cascade tool to form a complete collateral management platform. Version 2.0 is now capable of creating cascades of any type for AVMs, BPOs, appraisals and other valuation products. Further, and this is the really cool part, the platform allows users to create their own cascades, using easy-to-build rule sets, and then share them with others. Consultants and wholesale lenders are already using the platform to create branded collateral risk management tools that they can license to other users or hand down to third-party loan origination networks as a risk mitigation strategy.

Secondly, Veros launched its Collateral Integrity Analysis Report, which is the company's answer to the collateral score. The model takes into account all kinds of property- and neighborhood-related factors, combines them with general economic data and then provides a score from 1-100 to indicate how much risk there is in the collateral. The company didn't say this in the release, but next year Veros will release a similar tool for borrower for the borrower side of the equation. Expect to see the company talking a lot about fraud mitigation as these tools are designed to ferret it out and stop the deal before funding.

For more information, check out the company's website at www.veros.com.