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Appraisal Technology Innovation That Maximizes ROI for Mortgage Lenders

The mortgage industry is typically very slow when it comes to embracing new technology. Its advancements are mostly driven by regulation, GSE policy, or disruptive technology. The latest advances, spurred by the launch of Quicken Loans’ Rocket Mortgage, have simplified the application process, and have proven to be wildly successful. This approach clearly has mass appeal and has left most lenders scrambling to find technology solutions that provide a better borrower experience. This innovation has significantly increased the mortgage lender’s investment in technology, although much of their focus has remained on Point of Sale (POS) solutions.

The new POS solutions have clearly made an impact reducing inefficiencies on the front-end, driving up the number of mortgage applications. Unfortunately, this large increase in applications, which was also fueled by low interest rates, has exacerbated inefficiencies, and brought to light clear issues within many lenders’ back-offices. As a result, lenders have not been able to see their return on investment from technology spend.

Rather than focusing solely on the customer-facing portions of the mortgage origination cycle, lenders must also focus on streamlining the unseen back end elements that account for the biggest delays. By accelerating the back end of the mortgage origination process, lenders will become more profitable and greatly improve the borrower experience by reducing the overall number of days it takes to close a loan.

Lenders attempting to identify back end inefficiencies that can be addressed with technology often begin with the appraisal process, as the issues surrounding it make it hard to be overlooked. The traditional appraisal process is extremely manual, time-consuming, and resource intensive—thus allowing significant opportunity for improvement. This process, if not managed properly, can delay closings, frustrate borrowers, and kill deals. However, the right appraisal management technology can deliver remarkable ROI by automating manual processes, connecting systems, cutting hard-costs, and reducing man-hours.

The time it takes to complete a real estate appraisal is typically measured in weeks and continues to rise. Some borrowers are experiencing delays of over eight weeks, and with the high volume of loans, combined with the diminishing population of appraisers, the problem is only getting worse. Today, valuation management technology companies offer a range of solutions to attempt to alleviate the problem. The goal for lenders in adopting these solutions is to increase productivity, lower risk, and increase profit margins, as many that previously rejected these types of technology innovations have become more open to make the leap into the digital mortgage world to ensure they stay compliant and competitive.

Most appraisal management systems offer some benefits that can assist in improving internal processes. However, many of these platforms are far from a comprehensive, end-to-end solution—providing limited resources and functionality. Global DMS’ EVO platform is revolutionizing the way lenders manage collateral by streamlining the entire appraisal process through workflow automation, programmable artificial intelligence (AI) assignment, transparent communication, and LOS connectivity. EVO also supports key back end processes, including secure automated borrower credit card processing and compliant appraisal delivery. When evaluating an appraisal management platform, lenders must ensure the software has the basics met, provides automated delivery to the UCDP, EAD, and the upcoming FHA Catalyst portal, and should settle for nothing less than an enterprise-level solution that can offer true end-to-end automation—from initial assignment to review to final delivery.

Global DMS’ EVO appraisal management platform completely automates the entire real estate appraisal process, while providing the industry’s only Compliance Guarantee Program. Best of all, EVO is completely user configurable—ensuring a fast, personalized, and pain-free implementation that can be measured in days. Lenders looking for a plug-and-play solution to address their numerous appraisal woes need to look no further, as EVO provides the ability to easily implement and change their valuation process without costly and time-consuming internal IT projects, no matter their business model—whether that’s managing several Appraisal Management Companies (AMCs) or their own appraisal panel directly.

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About Author: Vladimir Bien-Aime

Vladimir Bien-Aime is CEO and Co-Founder of Global DMS, the award-winning pioneer of Web-based appraisal process management software and a provider of technologies 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, including the Dodd-Frank Act and new Interagency Guidelines, as well as initiatives such as Uniform Appraisal Dataset and Uniform Collateral Data Portal. For more information, questions, and guidance, lenders can visit GlobalDMS.com/ead-help.
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