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An enterprise-class workflow-based valuation management platform can automate much, if not all of the appraisal process. There are many details to attend to in order for appraisals to be completed, and they of course must be done in full compliance with state and federal rules and regulations.
One area that is of particular importance is ensuring appraisal quality by way of trigger-based automation at certain points in the workflow. While there are various checks and balances that can assist with returning quality appraisals before they go to underwriting, many of them are not typically automated, leaving organizations with a higher risk of running into appraisals issues—affecting timelines and the salability of loans.
However, having a workflow-driven valuation management platform in place ensures proper timing and execution throughout the appraisal process. By leveraging such a platform, you can configure your system to automatically trigger appraisal quality reviews, thus eliminating manual intervention. The ability to run multiple review products is key, as many systems only offer one option that may not fit every given situation properly.
Valuation workflow technology can be set to run appraisal quality reviews at any point in the process for real-time appraisal evaluation for completeness, compliance, and consistency with GSE guidelines, USPAP, UAD and industry best practices. This significantly reduces an underwriter's time spent on the collateral review process, and it prevents issues that may result in the appraisal not being accepted, which can hold up loan approvals.
As an example, collateral analytics can be set to automatically trigger at a certain point in the workflow to score the appraisal and provide reviewers and underwriters with a detailed analysis of appraisal quality, repurchase risk, valuation uncertainty, market volatility and more. Similarly, AVMs can also be automatically ordered during the workflow to perform a cursory collateral quality valuation check early on in the process by way of auto trigger. Again, human intervention is avoided.
Within workflow automation technology resides a rules engine which empowers users with functionality to implement auto-triggers that are action and status-based, giving you full control over appraisal orders. And, workflow rules can also be put in place to efficiently manage vendors. For instance, when a vendor uploads an appraisal, a review is automatically triggered–thus eliminating timely back and forth communications. The bottom line is that there is a lot of control that workflow automation can deliver, and more control translates to better quality appraisals.
The beauty of a platform that functions utilizing a trigger-based system of workflow actions is that you can ensure appraisal quality checks are executed automatically throughout your process versus utilizing manual intervention, which is costly and risky.
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 October 2016 print edition of National Mortgage Professional Magazine.