Challenging real estate market conditions and profitability pressures have lenders contemplating how to streamline operations and increase profit margins. Borrower concerns about high interest rates have dominated the news cycle. Waves of layoffs across industries has everyone on edge. The go-to model of reducing overhead while demanding more from employees is rarely successful in the long-term.
So, how are the top credit unions, banks, loan servicers and mortgage lenders able to navigate through the uncertainty and continue to thrive? They are investing in appraisal management technology to modernize archaic appraisal processes and establish central visibility into all appraisal orders across in-house appraisers and AMCs.
A survey conducted by Forbes found 78% of representatives of large banks and lenders believe streamlined, automated processes at scale will transform and disrupt the mortgage industry. Appraisal management technology is the backbone of this transformation. The right appraisal management technology platform will allow you to order, review, manage and analyze real estate appraisal and collateral valuations in one location – for both internal appraisers and external AMCs. By optimizing processes and leveraging technology to fill the gaps, organizations can eliminate administrative burdens, streamline communication, increase efficiency and spend more time on high-value projects.
Vendor consolidation is one way an appraisal management technology platform can help you reduce overhead and increase profit margins.
3 Main Benefits of Leveraging Appraisal Management Technology for Appraiser and AMC Vendor Consolidations are:
Increased operational efficiency. The old way of managing appraisals through spreadsheets, email and third-party systems is out. Appraisal management technology is in. Appraisal management technology allows you to load your nationwide appraiser panel and approved AMCs onto a single platform. By doing this, you enable seamless collaboration and visibility into appraisal status. Once loaded, you can rate and score appraisers and AMCs on cycle times, revisions and reliability – which is a huge benefit to increasing turn times. You have the ability to select the best appraiser based on geography, loan type, certifications and availability. Which means you can quickly fill appraisal requests with a reliable appraiser, certified in the location and loan type of your customer.
Lower oversight costs. When you’re leveraging multiple spreadsheets, applications, email chains and other channels of communication for your appraisal processes, something will inevitability slip through the cracks. It could be as simple as a missed appraisal appointment or as detrimental as a costly compliance oversight. Appraisal management technology has safeguards in place so issues with appraisals are flagged and escalated, compliance is always maintained, and your team is not overburdened with administrative tasks. Invoicing is often a time-consuming process for your team. An appraisal management system allows you to receive, track, manage and pay appraisal invoices in one system, using approval processes and audit controls you configure. The process of maintaining appraisal licenses and E&O insurance policies can also be handled by an appraisal management technology platform. The technology will allow you to stay compliant with current local and federal laws and keep records of all licenses to ensure proper compliance checks are in place.
World-class consumer service. Maintaining a good relationship with borrowers is what differentiates the best lenders and drives competitive advantage. If your appraisal management processes are outdated and you spend more time in spreadsheets, third party applications and email to dig up consumer information, your customer service will be affected. How much time does it take for you to answer a consumer question about their appraisal status? If the answer is longer than a few minutes, it’s time to invest in an appraisal management technology platform that grants borrowers visibility into appraisal orders. Greater transparency and increased collaboration are two of the biggest drivers in consumer satisfaction and two of the biggest benefits from establishing a centralized view of your appraisal management function.
If you are interested in investing in appraisal management technology, consolidating all of your appraisers and AMCs onto one appraisal management system can help you reach your goals.
Check out our whitepaper, “Choosing the Right Appraisal Management Platform,” which offers tips for evaluating and selecting the right appraisal management technology vendor for your business. Or contact us directly at 1-216-487-6800 or to talk about your unique needs.