Although lenders aren’t required to use an appraisal management company, it is becoming increasingly common for them to do so. Appraisal management companies can save a lender time, money, and alleviate compliance responsibilities while protecting the bank’s investment in its real estate loans. Here are 5 brilliant AMC tips for real estate lenders in Colorado from us here at Members Appraisal Management, an appraisal management company, to help lenders make the most of their loan officers, appraisers, and investments:
1. Select a trusted partner with a proven track record.
Appraisal management companies have established relationships with lenders, appraisers, and compliance professionals that can be invaluable when it comes to loan collateral valuation processes. This will help lenders to meet the deadlines for any FHA, VA, or USDA valuation requirements.
2. Improve accuracy and consistency by using a company that specializes in appraisal management.
An appraisal management company can track collateral values over time and provide data on market trends to show how well appraisers are doing at identifying accurate valuations. This will also ensure that all loan officers within a lender’s organization are providing consistent levels of service to borrowers. Accuracy and consistency are key.
3. Reduce costs by transferring responsibility to an AMC.
Lenders will benefit from cost savings associated with competitive bidding, negotiation, appraisal management software, appraiser qualification, and utilization reporting, as well as the ability to use third-party auditors to ensure compliance throughout the process.
Since lenders are passing the responsibility of appraisal management to experts, they will have more time to do what is really important – serve their borrowers.
Real-estate loans can carry significant amounts of collateral value, so it’s crucial that lenders have someone they trust managing this portion of the loan process in order to maintain quality and compliance throughout the entire process. If not managed accordingly, Lenders put themselves at greater risk.
4. Utilize AMC technology.
Lenders cannot afford to be behind when it comes to using technology in today’s market. By utilizing an AMC’s appraisal management software, lenders can benefit from improved efficiency with customizable documents and forms that can cut down on processing times. This means higher quality service for their borrowers.
An appraisal management company will provide all of the tools necessary for loan officers and appraisers to manage their collateral valuation process. All that is required of lenders is training for its employees, then oversight as needed with reporting, audits, or any other compliance activity.
5. Focus on business development activities by taking care of collateral valuation services in-house or outsourcing them to a third party with expertise in this area.
Since an AMC is focused exclusively on ACV, a significant amount of work and responsibilty is transferred to the third paty. This means that a Lender can focus on more business development actitivies and less on appriasal process, quality control, compliance and administrative tasks. By outsourcing the apprisal process, precious time can be saved for more important business activties.
Concluding 5 Brilliant AMC Tips For Real Estate Lenders In Colorado:
As an appraisal management company, we pride ourselves in maintaining strong relationships with lenders and their loan officers and of course, our appraisers. We ensure we stay current with lending and appraisal industry trends that affect our customers’ businesses. We welcome the opportunity to build new relationships and explore ways we can assist you and your business. If you’re ready to take advantage of all AMC’s have to offer, contact us today!