07 Mar 5 Reasons To Change The Appraisal Process To An AMC Model

The uptick in mortgage activity has inspired many lenders who have traditionally managed their appraisal process to look at partnering with an appraisal management company (AMC). By working alongside an AMC, it allows lenders to focus on their core competencies, which is crucial in our current real estate climate. Arivs’ influence as a national appraisal management company has made it possible for lenders to be more effective at their jobs. Today, we will be discussing 5 reasons to change the appraisal process to an AMC model. 

Resources For Risk Management And Regulatory Compliance

We can understand the difficulties that come when dealing with and understanding the complexities of evolving statutes, regulations, and industry standards. Doing so requires diligence and investment from institutions. The best way to be relieved from this burden is by using a national appraisal management company. Which further simplifies the appraisal process since AMC appraisers are independent of the lending organization. AMC’s will invest in risk and compliance measures (including developing and implementing technology), systems, and protocols for addressing a myriad of compliance needs. AMC’s that are proactive will be poised to handle any regulatory changes that come up, making it easy to implement new lender-driven requirements, policies, and procedures.

AMC’s Can Reduce Admin Oversight Responsibilities

Partnering with an AMC will relieve lender’s from maintaining and managing an appraiser panel which includes tasks like screening, selecting and boarding new appraisers, auditing for certifications, licenses and insurance, scoring, etc. The assigned appraiser will instead be assigned to each order. It doesn’t stop here. Admin oversight, when handled by an AMC, is far-reaching. Apart from the core responsibilities of running the appraiser panel, AMC’s can impose errors and omissions insurance and supply state and federal background checks for every appraiser. Your national appraisal management company may even invest in score-carding throughout multiple disciplines. This can ensure that a qualified appraiser with the appropriate skills is selected for each appraisal.

Technology And Infrastructure Is Unmatched

Some of the best AMC’s are using cutting edge technology to perform their daily tasks and operations. By streamlining these processes, it provides a better experience for clients. AMC’s with a national presence like ours, will work closely alongside the lender base, further assisting them in anticipating and reacting to emerging challenges. Being cognizant of the insight from consumer’s on what they want or expect from a technology perspective, helps a national appraisal management company identify the trends that can ordinarily take an individual lender a little longer to recognize. In doing so, it makes it feasible to keep the technology ahead of market. If an AMC offers some sort of proprietary technology that is used for digital scheduling, you will want to take advantage of this. The technology provides consumers, loan officers, and real estate agents, due to the increase in convenience and transparency. It removes uncertainty through the elimination of phone tag and scheduling delays. Even better, this can add onto the credibility of the lender as the partner is also focused on achieving customer satisfaction to the fullest extent. 

Helping Lender’s Scale

Lenders need to be quick on their feet when recruiting appraisers. Why? Because, refinance volume recently spiked to a 17-year high! Most AMC’s were able to accommodate these increases because they had the bandwidth in place for nationwide coverage. Part of their job is to manage volume from lenders around the industry. In turn, they will build out scalability into their capabilities and more importantly, the deeper pool of talent will offer a wide range of knowledge such as specific property types and value ranges. 

You Will Have Options

Some lenders will happily make a full transition towards the AMC model. However, some might opt for a hybrid approach. A hybrid model can adopt the AMC’s technology, but not the panel management, allowing the appraisal management company to manage a bank’s existing panel as an independent entity, or by leveraging the AMC when handing off volume outside the geographic scope or area of expertise.

Using A National Appraisal Management Company

Arivs has the prominence of a national company, while operating under a localized approach. To get started with our team of knowledgeable professionals, contact us today!