If you’re frustrated by your appraisal management process, you’re not alone. Lenders often cite the appraisal process as one of the least predictable and least automated steps of the loan process. There are many reasons for this, but a big factor is whether or not you have the right appraisal management technology platform.
Appraisal management technology is meant to streamline and optimize your business to improve the consumer experience, enable better decision-making and lower operating costs. Appraisal management technology is not meant to have you pulling out your hair as you toggle between multiple systems, applications, emails, and chat threads to update a client on the status of a loan application or fulfill an appraisal order.
A recent Forbes Insight survey conducted by Freddie Mac shed a bright light on the current and future state of digital mortgages and the technologies that support them. Key survey results indicate that the banks and lenders who are rapidly adopting the latest appraisal management technology are quickly outpacing their non-tech savvy competitors.
- 78% of representatives of large banks and lenders say that streamlined, automated processes at scale will transform and disrupt the industry
- 74% of respondents say the industry will consolidate, with large, nimble, tech-savvy platforms outperforming less comprehensively digitized lending models
- 30% of respondents say that by 2023 all key front- and back-office elements of mortgages—including origination, documentation and closing—will become digitally integrated and enabled. Sixty percent say that this will happen by 2025.
If you are evaluating new appraisal management technology or questioning if your current appraisal management process can handle the acceleration of innovation, consider whether any of the following red flags exist. If so, it’s time to start looking for a new appraisal management solution and modernizing your approach to appraisal management.
5 Red Flags to Look for in Appraisal Management Technology:
- Lack of sophisticated customer support. Consumers are going through a major financial decision when they decide to purchase, refinance, or take out a home equity line of credit on a home. They deserve transparency and confidence in their lender and to feel supported through every step of the process. There are many appraisal management technology solutions competing for your business. From startups that offer inadequate and undependable support infrastructure to large, legacy vendors that do not place adequate value on the customer experience. If customer experience is a priority for your business, you need an appraisal management technology and vendor that shares the same vision. To meet evolving borrower demands and offer a highly personalized experience, look for an appraisal management technology platform that enables online and mobile options with on-demand data access, while also enhancing the experience for all stakeholders, streamlining the process and accelerating efficiency.
- Inability to configure and scale the technology. Your appraisal management mantra should be process first, technology second – meaning your technology should streamline and optimize the appraisal management workflows you have created – not dictate how you move through the process based on a vendor framework. The only way to support a process first, technology second strategy is through flexible, open architecture SaaS technology, configurable to your unique workflows. Technology vendors will lead you to believe you can adapt their systems to meet your needs – but that is not always the case. If you want to drive innovation, respond easily to change, bring new products to market quickly and scale your business – you need an appraisal management technology with the flexibility to bring your workflows and vision to life, on your terms.
- Multiple solutions cobbled together to support vital appraisal process workflows. Leveraging multiple appraisal technology point solutions, AMC websites, spreadsheets, email exchanges and one-off chats to open, track and fulfill appraisal orders is not an efficient way to run your business. The level of custom coding needed to make these systems work together and the lack of a single view of all appraisal orders result in a frustrated team and an IT maintenance nightmare. An effective appraisal management technology platform should provide pre-built connectors to major loan origination systems (LOS), align all stakeholders on a shared platform and provide on-demand access to all of your appraisal orders.
- The platform doesn’t support innovative appraisal forms and processes to help Appraisers save time. Appraisers often spend valuable time driving around from appointment to appointment inspecting properties, taking photos and collecting data. This adds cost for you and the appraiser and slows down the loan process. Some of this work can be strategically outsourced to third-party property data collection providers. An appraisal management technology platform that can facilitate third-party inspection data uploads and hybrid appraisal models will give you a competitive edge in the industry. Not only will appraisers appreciate the ability to generate appraisals more efficiently, you benefit from accelerated appraisal turn times and reduced costs without sacrificing quality or compliance.
- Data accuracy is constantly questioned by both the lender and borrower. If you’re seeing any of the four red flags listed above, it’s likely the accuracy of your data is also at risk. When you rely on manual data entry and leverage multiple systems and disjointed communication channels, you’re prone to human error. Simple mistakes can cause major problems and put your business at risk. Through effective appraisal management process automation and automated business rules, you can dramatically lower risk. Leveraging technology to enable workflow efficiency and appraisal validations will improve data accuracy and appraisal quality, while also enabling you to deliver consumers a great appraisal experience with fast turnaround at a competitive price.
The digitization of the mortgage industry is here and consumer expectation has never been greater. Are you ready to take advantage of the latest appraisal management technology on the market today to deliver a better borrower experience while also improving efficiency, driving innovation and gaining market share? Contact AppraisalWorks at or call us at 1-216-487-6800.