Top things to look for when evaluating a valuation management platform
Most of the valuation management platforms that are commercially available on the market today include a number of different components that automate the bulk of the appraisal process. This includes things like vendor management, ordering, assigning, delivering, reviewing and selling the appraisal to investors/government-sponsored enterprises (GSEs).
However, two critical components that help lenders take automation and visibility to the next level are workflow-driven technology and depth of reporting capability.
Workflow automation
To start, robust workflow automation accompanies a workflow engine that establishes a fully workflow-driven process by applying customizable business rules to determine precisely how and when everything happens. The workflow engine can be custom-configured to your unique way of handling appraisals, automating multiple complex events, actions and statuses using specific appraisal order timelines. Manual intervention by staff is then circumvented, data errors or missing information is eliminated, costs are reduced and the entire workflow becomes smoother.
A completely workflow-driven valuation process leveraged by a workflow engine can easily automate emails, queue up automatic time-based messages, provide status updates, access to real-time reporting, and the compliant distribution of appraisals to investors, GSEs (Uniform Collateral Data Portal-UCDP) and FHA (Electronic Appraisal Delivery-EAD). In addition, the workflow engine can be set to initiate various data analytics, collateral reviews, scoring and more at desired times.
Bringing the appraisal workflow full circle, integrations must exist with third-party vendors such as loan origination software (LOS), data analytics systems, automated valuation models (AVMs), broker price opinions (BPOs) and other relevant technologies needed to facilitate a soup-to-nuts process.
Reporting
Robust, real-time reporting is also essential to enable visibility throughout the appraisal process. Light reporting functionality can leave you in the dark. One key thing to look for when it comes to reporting is the ability to create custom reports by non-technical users, which is usually achieved via an easy-to-use wizard that outputs them into web-based forms.
Detailed, custom reports provide a level of oversight that helps you handle appraisals very efficiently and gives you unique insight into process performance along with metrics that help you make more intelligent and profitable business decisions.
Reporting functionality can also track and log the compliant competition of all tasks, timelines and entities involved in the process, giving you peace of mind that everything is well-documented to protect in the event of an audit or issue. Potentially fraudulent activities can also be caught, thus reducing exposure. And lastly, providing reporting to investors/GSEs/FHA gives them the confidence that the loans they purchase from you will be accepted without problems, avoiding costly kickbacks and closing delays.
Unfortunately, many organizations are unaware of the importance of rich, customized reporting functionality and the implementation of a truly workflow-driven appraisal process guided by a workflow engine. Make sure you understand what could be missing with your current valuation technology solution.
Vladimir Bien-Aimé is president and CEO of Global DMS. Since founding the company in 1999, Bien-Aime’ has grown Global DMS to capture a leading share of the appraisal management segment, with a client base of more than 20,000 unique users and integrations with the industry’s leading mortgage technology vendors. He may be reached by phone at (877) 866-2747, e-mail [email protected] or visit GlobalDMS.com.
This article originally appeared in the July 2016 print edition of National Mortgage Professional Magazine.
