January 2017 - The World's Local Bank

TheMReport — News and strategies for the evolving mortgage marketplace.

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32 | TH E M R EP O RT FEATURE provided by the valuation man- agement software vendor contain- ing an audit tracking functionality that gives lenders visibility and control over the entire appraisal process for all AMCs. Differing Technologies It is important to note that in order to achieve seamless integra- tions to help keep lenders compli- ant, the AMC needs to leverage a centralized valuation management platform, not an appraisal ordering system. Valuation management platforms are comprehensive in nature and do much more than an appraisal ordering system. A valu - ation management platform is cus- tomizable to the lender's specific processes that drives the entire workflow, enabling the automation of many different complex events, actions, and statuses based on spe - cific appraisal order timelines, and it also keeps appraisal guidelines up-to-date. Further, an appraisal ordering system cannot integrate tightly with the LOS and automate the entire valuation process from start to finish. It only addresses appraisal ordering and assignment, which is but a small part of the overall solution, and it definitely isn't compliance-focused. We're seeing rates inch up and profits starting to erode, which will be an ongoing trend. That said, in order to be as efficient as possible and stay compliant, AMCs need to have in place an enterprise-level valuation man - agement platform that integrates seamlessly with the industry's leading LOSs, which when using multiple AMCs, this becomes very important. If you're a lender, make sure that the AMC you do business with has the necessary technology in place to allow bi-directional exchanges of data with your LOS. It will prevent a myriad of issues and heightened compliance risks. VLADIMIR BIEN-AIME is the CEO and Co-Founder of Global DMS, a provider of appraisal process management software and technolo - gies used across the mortgage process. He is an appraisal compliance expert with specific knowledge of the most current federal, state and local appraisal-related regulations. * * * Critical Valuation Decisions Lenders Must Make in 2017 By William Fall "I 've never failed," the famous inventor Thomas Edison once said, adding, "I just found 1,000 ways that won't work." I'm sure many mortgage professionals can sympathize with this statement, there are, literally, more than a thousand ways something can go wrong in the mortgage process. Valua - tions in particular have been the source of many a misadventure. But in a brightening market, such as we have today, there is no room for error. The specter of higher interest rates and a strengthening economy promises to bring much-needed new money to the housing market, and come spring, every lender will be set to pounce. How Do We Stop Wasting Time? More and more often, lenders are interpreting appraisal require- ments from their investors too strictly, which leads to additional delays when appraisers are asked to revisit subject properties. Another challenge is meeting the tight appraisal requirements for FHA loans, which place the ap - praiser in the position of a home inspector and place even greater pressure on appraisal turn times. And then there is the issue of high collateral review scores, which I'll get to shortly. These challenges are nothing new—they are common realities in the appraisal business for the past several years. Yet they will become magnified as the purchase market builds up steam. Left unchecked, lenders will wind up with a longer and longer appraisal process, inevitably resulting in de - layed transactions and lost deals. Or worse, lenders may make the decision to pick the quickest, easiest valuation at the risk of getting it wrong—and getting in huge trouble. The lack of a sound approach to securing purchase appraisals could particularly be damaging to the growing number of independent mortgage bank - ers and online lenders whose calling card has been an efficient, consumer-focused approach. So how does one get timely appraisals in such an environ - ment? The answer begins with "A valuation management platform is customizable to the lender's specific processes that drives the entire work flow, enabling the automation of many different complex events, actions, and statuses based on specific appraisal order timelines, and it also keeps appraisal guidelines up-to-date." — Vladimir Bien-Aime, CEO and Co-founder, Global DMS

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