Continued high interest rates and low loan volumes are keeping pressure on lenders to deliver greater operational efficiency. While finding ways to lower costs is necessary for profitability, cost cutting at the expense of innovation can backfire when the market rebounds. Appraisal modernization provides a clear path to operational efficiency for lenders without compromising innovation and future success.
Appraisal modernization can help reduce costs, improve turn times, reduce errors, and streamline data in multiple ways resulting in a better experience for both lenders and their borrowers:
Better Technology Integration. Appraisal modernization requires the adoption of new technology – this can be a much-needed catalyst for replacing disparate legacy systems with a unified platform. Adopting a cohesive appraisal technology platform for appraisal order management, appraisal tracking, and appraisal reviews streamlines communication and workflow between lenders, appraisers, data collectors, consumers, and other stakeholders – providing significant improvements in operational efficiency.
Built-In Compliance. The compliance function can be a source of costly overhead for lenders. By modernizing appraisal processes and implementing appraisal management technology, lenders benefit from built-in compliance through repeatable processes, an electronic audit trail and instant access to appraisal management data for reporting and compliance verification.
Lower Human Capital Costs. Appraisal modernization inherently reduces the operational costs associated with traditional appraisal processes by reducing travel, accelerating appraisal report creation, and reducing human errors that can lead to costly rework.
An additional way tech-savvy lenders lower human cost is by implementing collateral management software to automate processes, minimize errors, improve resource allocation, enhance scalability and flexibility, and support better decision-making.
Improved Process Efficiency. Capturing and automating appraisal processes on an appraisal management platform can deliver an immediate reduction in costs – while at the same time improving appraisal turn times and delivering a better borrower experience. Process automation also enhances productivity and reduces errors. Process efficiency alone has the potential to deliver the ROI needed to justify investment in modern appraisal management technology.
Enhanced Data Visibility and Utilization. Appraisal modernization technology provides a fast path to data consolidation, data access and data analysis. Instant access to historical sales data, market trends and other relevant data from current data sources can significantly improve appraisal accuracy. In addition, consolidated access to historical appraisal data can allow for detailed analysis on turn times and appraiser performance to help the optimize appraisal management processes.
Because of its direct and positive impact on driving operational efficiency, lowering risk, and enhancing the consumer experience, appraisal modernization supported by a comprehensive appraisal management technology platform is proving to deliver both short-term efficiency gains and long-term competitive advantage for lenders.
Contact AppraisalWorks at to learn how you can drive operational efficiency and lower costs through appraisal modernization.
Our focused implementation process can help you start realizing tangible benefits faster than other options on the market today.