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92 VeroSELECT platform, a single data call is made, which generates a "cascade" through which up to 10 AVMs may be run to increase the likelihood of getting a hit. e VeroSELECT system stops requesting AVMs once it has received three valid hits. VeroPACE then de- termines the AVM with the highest confidence score, calculates the average of its high and low values, and returns it to the lender in a standard- ized data format. VeroPACE also generates a coversheet with all the data elements that can be put in a file of supplemental information. California's Housing Crunch As home prices in the western U.S. con- tinue to climb, candidates for the California governorship are offering up solutions to tackle the crisis. At a recent conference in Sacra- mento hosted by the advocacy group Housing California, six leading gubernatorial candidates spoke on the costs of new homes and rising rates of homelessness in their state. Data from the S&P CoreLogic Case- Shiller National Home Price Index shows that the western U.S. is home to some of the hottest markets in the country, and the candidates for governor will undoubtedly be expected to ad- dress these housing concerns. Former San Francisco Mayor and frontrun- ner Democratic candidate Gavin Newsom has pushed for 3.5 million homes to be built within seven years, which his rivals have called "unrealistic." "e problem with being audacious is no one thinks it can be done," Newsom said. Other Democratic candidates, including Antonio Villaraigosa and John Chiang, have called for similar drastic programs. Villaraigosa suggested increasing the current housing sub- sidy from $4 billion to $6 billion, while Chiang set a building goal similar to Allen's, which he capped at a more "realistic" 1.6 million units within a decade. Republican candidates John Cox and Travis Allen, however, view government housing subsidies as more detrimental than helpful, noting the high taxpayer cost such programs would bring. "e California Democrats do not need to saddle Californians with even more debt," said Allen. "is is the entirely wrong approach." Cox proposed that the first step toward more housing was to eliminate some of the environmental and other regulations to reduce costs and time involved in construction. "ey can subsidize a few thousand homes somewhere, and that might help a few thou- CALIFORNIA Veros' VeroPACE Will Help PACE Lenders With Compliance Veros Real Estate Solutions (Veros), a Santa Ana, California-based provider of data, analyt- ics, and technology for the mortgage banking industry, has developed a solution for lenders specializing in PACE (Property Assessed Clean Energy) loans in the state of California, where new compliance requirements went into effect on January 1, 2018. VeroPACE, available through the VeroSE- LECT ordering platform, will generate, analyze, rank, and report the multiple Automated Valu- ation Models (AVMs) now required for PACE lending by California State Assembly Bill 1284 and the companion State Senate Bill 242. "e passage of this legislation significantly changed the valuation process for PACE loans, which are used to finance greater energy efficiency in homes," said Veros VP of Sales Rob Walker. "Historically lenders could process a PACE loan in California using the results of a single AVM, but they now need three AVMs and must use a new method of calculating the final value." AB 1284 intends to enhance PACE under- writing by requiring lenders to obtain the three AVMs from a third-party vendor, then choose the one with the highest confidence score and calculate the midpoint of that AVM's high-low value range. e resulting value, combined in a report with data from the three AVMs, be- comes the valuation submitted with the PACE loan application. "Ordering three AVMs on the same property can be difficult," added Walker. "And because different AVM providers have different methods of producing confidence scores and values, the mid-range requirement has presented some significant challenges for many PACE lenders. Also, if lenders cannot get three AVMs, they have to get an appraisal, which will add time and cost to the loan ap- plication process. To combat this, lenders need to achieve high AVM hit rates." "e good news for PACE lenders who are struggling with this new compliance require- ment is that VeroPACE handles the entire process for them," said Luke Ziegenmeyer, Director of Product Management at Veros. "And, if need be, we have an optional add-on for VeroPACE users that can facilitate the request and delivery of appraisals as well." When VeroPACE is ordered through the THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com.

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