TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/105753
FEATURE current license does not imply or infer competence for the specific property type, geographic competence, or ethics. Your vendor manager should be pulling background checks, ensuring current E&O policies are in place, requiring competency exams, verification of identity, reviewing sample appraisals, and checking each appraiser's disciplinary record. The engagement of a qualified appraiser has tremendous payoffs and tragic consequences if you don't follow that simple plan. Having proper fee panel management processes, practices, and procedures in place when the market returns will allow your institution to thrive. The onus is on us to help amass an army of expert appraisers to lead us into the next cycle—a task made all the more challenging due to the current shortage of solid professionals. The strategy, therefore, should be this: Identify your best appraisers and create a battle plan to allow them to train and mentor the next generation. It's reparations time. s e c on da r y m a r k e t a na ly t ic s Se r v ic i ng Or ig i nat ion SERVICING Automating Asset Valuation Striving for enhanced assessments of residential properties that protect both lenders and investors, the industry is welcoming the launch of a new, collaborative technology initiative. S mithfield & Wainwright (S&W) is teaming up with Marshall & Swift/Boeckh to launch a new, automated solution for evaluating properties and resulting portfolios of mortgage loans. Releasing the Residential Asset Monitoring (RAM) module, the companies' initiative will give banks and lenders a more comprehensive, "forwardlooking" method for assessing the value of residential real estate and, ultimately, their portfolio health and compliance procedures. Taking an intensive approach to researching and developing the program, S&W spent four years working with Florida State University and other universities to test and validate the RAM solution. Lenders tapping into the RAM tool will gain a fully automated service that allows for the entry of individual or batched properties in order to generate valuation reports for each address via S&W's proprietary LPV system. In an official statement, S&W noted the RAM process uses the "three accepted appraisal valuation approaches: sales comparable, cost, and income" to help companies "monitor and value their mortgage loan portfolios." Elaborating on the RAM solution, S&W's chairman and CEO, "Big" Hogan E. Copeland II, stated, "The RAM solution allows for an objective view of valuation and provides a standardized valuation approach for dealing with Tier 1 Capital require- Receive a free subscription to MReport! ments and capital impairment. The ability to provide a concise view of assets provides assurance that the institutions holding real estate portfolio assets provide a transparent picture not only for regulators, but also for rating agencies and shareholders. This paradigm of the RAM solution will help stabilize the U.S. real estate markets." Adding his commentary, MSB's VP of real estate-government business, Todd Eyler, noted, "We're pleased that MSB's trusted reconstruction cost data is an important part of the RAM solution. Our collaboration with Smithfield & Wainwright provides a solution to help banks value residential mortgage collateral using multiple forward- For more information on your free subscription, contact Jason Myers at 214.525.6700 or Jason.Myers@TheFiveStar.com. news and strategies for the evolving mortgage market themreport.com november 2012 The On Your Side: Mortgage Banking News, Done Better Digital Age theMReport.com Could Advancing Digital Strategies in the Marketplace Soon Render Originators Obsolete? The Evolution of Social Media Platforms is Creating a New Kind of Crisis for Housing Finance Professionals. Originations | Servicing | Analytics | Secondary Market Experts you trust. People you know. News you want. MReport brings today's housing finance headlines into focus. You know mortgage banking, and we know you, which is why you can count on MReport to provide insight into the latest industry innovations. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage marketplace. Because the American Dream is evolving . . . are you? Subscribe now! Call 800.856.8060 or connect with us online at TheMReport.com. 54 | The M Report