TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1379186
36 | M R EP O RT EXPERT INSIGHTS The Problem W ith mortgage rates at record lows and rules and regulations changing, many lend- ers and AMCs, both large and small, scrambled to recruit and augment their staff to accommo- date the volume. Although adding staff can result in increased production, it also adds costs and training time, and the sheer numbers of appraisal orders were almost too much for most orga- nizations to manage promptly— even if they had adequate staffing. Clearly, the staffing approach to managing heavy workloads requires a long-term commit- ment and has several inherent drawbacks, including additional overhead costs and employee ramp-up time. However, lenders that embraced scalable workflow technology solutions were unaffected by the sudden surge of refinance volume. While their peers struggled with long turn-times, compliance risk, high appraisal costs and deal fallouts, they thrived. Leveraging a complete appraisal management workflow system, configured with artificial intelligence functional- ity, saved time, eliminated costly errors, maximized staff perfor- mance, and provided a significant competitive advantage for those organizations. The productivity lift enjoyed by lenders and AMCs who made the transition to a next-generation appraisal management technology were measurable and massive. Unfortunately, many lenders are unaware of their available op- tions when it comes to appraisal technology. Although they have jumped out of the world of filing cabinets, spreadsheets, and email to manage their appraisal process, the latest advancements are a gigantic leap forward in compari- son. Traditional appraisal manage- ment software that lenders utilize today as either a feature within their LOS, a home-grown appli- cation, or an off-the-shelf product are ill-equipped to provide a guaranteed compliant solution that can be instantly configured by the end-user and operate without any human intervention. Many lenders have no idea how far behind they are on the valuation technology curve and the negative impact it has on their day-to-day operations. Fortunately, these antiquated platforms that plague the industry are easily identified by their symptoms, such as the suspiciously high number of staff required to process appraisals, excessive number of revisions, con- stant delays, poor communication, and increasing costs. Lenders that experience these issues typically find themselves rekeying data into their LOS, manually assigning orders and searching for appraisers, mailing appraisals to the borrower, and reviewing 100% of appraisals. They rarely know where their appraisals are in process—show- ing just how far behind the curve they truly are. Additionally, lenders that find themselves trapped in the costly pay-and-wait customization cycle with their software vendors for even the most trivial of enhance- ments have also lagged. The Solution W hat's needed: a 100% configurable cloud-based appraisal management platform that leverages artificial intelli- gence, connects with your current LOS, requires limited staff, and is instantly configurable to your company's needs. EVO™, from Global DMS®, propels the real estate valuation industry into the digital age through a combination of smart automation, plug-and- play integration, and transparent communication. EVO is a complete, end-to-end valuation management solution that accelerates every aspect of the appraisal process. From the very beginning, EVO provides value by validating the appraiser's license during the boarding process and monitors them daily to ensure compliance. EVO's programmable AI can assign orders in the same logical manner a person would, but 24/7, while conducting automated quality reviews, directing all commu- nications, and delivering reports to GSEs, loan officers, and the borrower simultaneously. EVO's elegant design offers the maximum staff output, utilizing job specific dashboards to focus users only on relevant tasks, iden- tifying outliers, and monitoring service level agreements (SLAs) based on company policy. The most innovative systems offer so- phisticated decisioning algorithms to address multiple vendors for hybrid appraisals and incorporate Fannie and Freddie scoring to streamline workflow and reduce underwriting review times while mitigating compliance risk. Many lenders struggle with their appraisal management process regardless of their approach, whether that be utilizing Appraisal Management Companies (AMC) or managing an in-house appraisal panel. If lenders find themselves logging on to multiple AMC websites daily and struggle with borrower credit card payments or electroni- cally paying appraisers, one thing is certain—with EVO, they'll have the right stuff. . VLADIMIR BIEN-AIME is the President and CEO of Global DMS, which he founded in 1999 and built from the ground up. Since that time, he has grown the company into the mortgage industry's leading provider of cloud-based, enterprise-class valuation management software solutions, including EVO™ Global DMS's newest platform. Do You Have the Right Stuff? Here's how to leverage technology for a painless appraisal management process. By Vladimir Bien-Aime SPONSORED CONTENT