2011 Technology All-Stars: Mortgage Banking Has Been Celebrating the Work of Mortgage Industry Technology Innovators since 2002, with Our Annual Selection of Technology All-Stars. This Year 10 More Honorees Join the Select Group of Standout Players Whose Significant Industry Contributions Have Earned Our Kudos

Article excerpt

A year of unprecedented changes in home values and an ongoing tidal wave of defaults is a great time to recognize the contributions of mortgage industry players who've focused their efforts on technology advancements on the collateral and loss-mitigation sides of the mortgage banking equation. This can-do bunch of thought leaders and get-'er-done types are people who like to lead rather than follow, and they definitely think outside the box--way outside the box. * The specific contributions made by this year's group of Technology All-Stars include creating open-data standards to support appraisals; tools to improve collateral analytics; workflow improvements in loss mitigation; and the creation of appraisal-management systems and platforms able to handle the Home Affordable Modification Program (HAMP) and Home Affordable Foreclosure Alternatives (HAFA) programs, as well as the first eDisclosures for those government loan-modification programs. * We celebrate this year's group of industry innovators and the significant work they do. Here they are--our 2011 class of Technology All-Stars.

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Darius Bozorgi

Chief Executive Officer, President and Co-Founder

Veros Real Estate Solutions

Santa Ana, California

GIFT TO THE INDUSTRY: Pre-funding quality control of appraisals, and intelligence and analytics for collateral value

What do you get when you cross a litigator and a techie? Darius Bozorgi, a former Chicago lawyer who today practices more law as chief executive officer (CEO) of Veros Real Estate Solutions, an appraisal, property valuation and risk analytics company, than he ever did as a trial lawyer. Disenchanted with the tiny amount of time he spent in the courtroom and the huge amount of time he spent pushing paper, the litigator was lured to Southern California in 2000 by his uncle, Veros Co-Founder Bijan Bozorgi.

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"I got hooked on the notion that automated decisions would revolutionize the way financial services companies made decisions," Bozorgi says. "We saw numerous voids in the way property valuation was dealt with in the mortgage market That was where we could be successful as a company and, more importantly, it was an area where we could provide the biggest value to the market and make the biggest difference."

Starting off in data and analytics, the company produced automated valuation models (AVMs) that were single-point estimates of value, then expanded into products that predict how collateral values would move in the future. These products ranged from market risk and fraud scores, default and real estate-owned (REO) AVMs, risk-based approaches to property valuation, transaction quality scores and evaluation of whether a transaction was really arms'-length.

In 2006 and 2007, when the market was going crazy and everyone else was battening down the hatches to weather the storm, Veros gambled that an enterprise class system to manage and evaluate collateral risk from cradle to grave would be exactly what the industry would need.

In 2009, that bet paid off when Fannie Mae selected Veros as technology provider for the Collateral Data Delivery Program. In 2010, Freddie Mac came on board and the Uniform Collateral Data Delivery Portal (UCDP) joint project was born, again with Veros as the technology provider.

"Real estate markets are cyclical," Bozorgi says. "There will always be ups and downs. What needed to change was our ability to identify, manage and price collateral risk on a holistic basis."

Bozorgi is an unusually deserving Technology All-Star choice because he made a second contribution to the industry that, on its own, would have been reason enough to add his name to the honor roll: the creation of the highly influential biennial Predictive Methods Conference (PMC).

While many mortgage market players hold client conferences, Bozorgi chose to create an open-source, industrywide conference and invited everyone--including competitors. …