There are multiple benefits that can be gained from using various types of appraisal software, but one that is of particular significance is a vendor management component. Having the technology tools and functionality to effectively manage numerous vendors is extremely important to efficiently complete the appraisal process without issues.
Much of this comes in the form of effective communication with vendors. Things like automating the communication of assignments, setting reminders, setting tasks and providing status are essential. Some appraisal software systems allow lenders and appraisal management companies (AMCs) to handle portions of this, but they lack in the ability to empower users to easily configure how vendors are managed using a workflow-driven process. Setting up reminders throughout the workflow is extremely helpful and confirms that appraisers are notified in a timely fashion. This saves huge amounts of time and ensures nothing is missed.
Another important part of managing vendors is scoring them for appraisal quality, which can also be a very time consuming undertaking if you don’t have a tool to manage it, and many times it simply goes undone. Just because an appraiser in a certain area is the closest or offers better pricing, is that really the best choice? Are they in good standing and properly licensed? Automated vendor management keeps you informed. For instance, appraiser turn times can be automatically tracked, stored and reviewed as needed. Communication scores can also be tracked when an appraiser updates the status of orders.
Things like appraiser licensing, turn times, communication levels and much more can all be automatically analyzed and scored using a valuation management platform that includes vendor management tools. Without the right technology, however, this would be very time consuming, and costly to complete.
If you don’t manage your appraiser vendors through a valuation management platform in a proactive manner, then how do you do it? Where do you store the data? How do you prove that you stay on top of your appraiser errors and omissions (E&O) if/when you get audited? How do you know when someone’s data needs to be updated and exactly when it is updated?
Using technology to automate the vendor management function enables you to be completely proactive with all of this. It saves you inordinate amounts of time while staying on top of your vendor data. Centralization, communication, transparency, tracking, scoring and reporting is the way to do it. But you need the right technology to do it.
Vladimir Bien-Aimé is president and CEO of Global DMS. Since founding the company, Bien-Aime’ has grown Global DMS to capture a leading share of the valuation management segment. He may be reached by phone at (877) 866-2747, e-mail [email protected] or visit GlobalDMS.com.
This article originally appeared in the September 2016 print edition of National Mortgage Professional Magazine.
