The fluidity of mortgage compliance continues to heat up, and now more than ever, all eyes are on lenders to operate in full compliance with the Dodd-Frank Act, the Consumer Financial Protection Bureau (CFPB), and state and federal-based regulations. Ever-changing compliance rules that pertain specifically to the way appraisals are handled have become a critical piece of the increasingly complex compliance climate. Using automated appraisal technology to remain in compliance is a must. But, appraisal technology yields a number of additional advantages above and beyond compliance adherence that efficiently manages the entire appraisal process, prevents fraud, reduces costs, establishes control, creates visibility and speeds up the completion of quality appraisals.
The seven advantages of using appraisal management technology:
1) Improved turn times: Appraisals typically take the longest of all loan fulfillment processes to complete, which opens up the potential for deal fallout. Using appraisal technology literally slashes the length of time it takes to complete appraisals.
2) Consistency and accuracy: All appraisals must be submitted to the Uniform Collateral Data Portal (UCDP). If there is missing or inaccurate information, the loan will be kicked back. Using appraisal technology ensures that all information is complete and verified to be accurate.
3) Enhanced transparency: The appraisal process is complex, intricate and has lots of moving parts. Appraisal technology establishes a level of visibility along with reporting that delivers much needed transparency.
4) Integrated collaboration: Appraisal management technology allows lenders to easily assign orders, communicate with appraisers and provide status updates. This makes the appraisers’ jobs easier and entices them to do more business with you.
5) Adaptability and control: Every lender has their own internal processes that they utilize to handle appraisals. Good appraisal technology should empower lenders with the ability to easily configure business rules that can tailor their unique processes.
6) Focus on higher yield activities: The appraisal process, in general, is a high-task, low-yield activity. This can result in increased labor costs. However, appraisal technology does the heavy lifting for you, eliminating laborious tasks and the potential for human error. As a result, costs are reduced.
7) Improved verification: Since appraisal technology flags any potential issues with valuation quality, lenders don’t need to invest the time and manpower to “double back” on quality control details. And, detailed records are maintained should there be an audit.
Compliance is king, but there are many additional benefits that leading appraisal management technology does to streamline processes and make lenders more efficient.
Vladimir Bien-Aime’ is president and chief executive officer of Global DMS. Since co-founding Global DMS in 1999, Bien-Aime’ has grown the company to capture a leading share of the appraisal management segment, with a client base of over 20,000 unique users and a 100 percent retention rate among lender clients. He may be reached by phone at (877) 866-2747 or visit www.globaldms.com.