Traditionally, appraisal reviews have required lenders to have a team of underwriters in place to manually review data to ensure accuracy and completeness. This process is time-consuming and the use of individual underwriters completing reviews introduces the possibility of human error.
With more emphasis than ever being placed on accuracy and compliance in valuations, lenders are looking to improve the accuracy and efficiency of their appraisal reviews. Automating the appraisal review process and outsourcing this step to their appraisal management partners can help them move in the right direction.
Partnering for automated appraisal review
Lenders who let their appraisal management partners take on the responsibility for the appraisal review are then able to focus their own energy on what they do best — originating loans. Their appraisal management company (AMC) can in turn apply their specialized knowledge to making the process more efficient for everyone.
Using an automated platform that’s built to accommodate customized rules and data sets can save a lender time and money, as well as improve accuracy in reviews. The lender should maximize effectiveness by choosing the right partner who can apply that customized ruleset to reflect the lender’s own quality standards. The AMC should mirror the lender’s system and incorporate its unique set of rules and checks into its own quality review process to ensure its reviews meet that lender’s criteria.
Automated appraisal reviews
An automated appraisal system optimizes key milestones of the appraisal process. In addition to the review process, streamlined steps include:
- Onboarding, new customer tracking and order triaging
- Automatic communication through key steps of the appraisal process — including appointment updates, assignments, completion, payment, etc.
- Order prioritization based on client, state, county, product and other factors
- Performance and quality analysis, with the ability to monitor, trend and report on performance and quality
- Proactive delay management
- Consumer engagement at key milestones throughout the process
Enabling a trusted AMC partner to assist with appraisal review means lenders benefit from cost savings and increased efficiency. They can also adjust to changes in volume without process or personnel disruptions.
Partnering with ServiceLink on appraisals
Lenders can garner these benefits by partnering with ServiceLink and using its tech-enabled appraisal system. ServiceLink’s goal is to build efficiency, accuracy and transparency into the appraisal process from beginning to end.
ServiceLink’s appraisal system delivers time and cost savings to its lender partners. Efficiency begins with its automated digital scheduling solution, powered by EXOS, where property contacts are connected to local appraisers and are able to digitally schedule their appraisals at the exact time and date of their choice.
This shortens turn times by eliminating the back and forth associated with scheduling and improves the borrower experience, even helping attract and retain borrowers. When asked about the benefits of using technology in the mortgage process in the 2023 ServiceLink State of Homebuying Report, 63% of consumers cited convenience and ease of use, 59% cited speed and 51% said the flexibility to make progress on their own schedule. By optimizing this step in the appraisal process, lenders can deliver all three.
ServiceLink’s automated appraisal platform allows for immediate decision-making on optimal workflow and appraiser engagement based on property data as well as systemic milestone controls and escalated management of at-risk and complex files. It also includes automated compliant profile management with appraiser transparency and over 50 eligibility checks in the assignment.
Additionally, ServiceLink offers an automated quality control platform, with which it aims to deliver one-touch, underwriter-ready appraisals every time. The platform allows for real-time or scheduled updates to rulesets, which are completely customizable to meet lenders’ unique needs.
The automated process stops key issues before they can occur and ensures full compliance with UAP, UCDP and EAD guidelines. It ensures that report data is accurate and that comparable selection is appropriate by including subject and comparable property data for review, in addition to other similar sales in the market area. It is fully integrated with Bing Maps to identify external influences and illustrate the aerial or street view location of the subject in relation to reported comparable sales and other market sales.
If a lender prefers a manual review, that’s also an option. ServiceLink’s manual reviews are conducted by analysts with specialized areas of expertise, which are governed by its underwriting platform’s user profiles. This means orders are routed to the most qualified analyst based on property type, value CU score, lender preferences and more.
During the manual review, the underwriting platform provides the analyst with a range of tools, including electronic maps that offer aerial and street views to help them evaluate the property location and external factors that may play into the valuation. Research data provided by third parties enables underwriters to evaluate comps based on a variety of attributes.
To learn more about ServiceLink’s valuation products, explore their valuation services or read about their commitment to appraisal modernization, visit https://www.svclnk.com/lenders/lender-valuation-services/.
