Many real estate lenders and mortgage servicers are still managing their own appraisal management function. As a result, adhering to regulatory compliance requirements has become a significant and expensive burden for these firms. In addition, the complexity of maintaining compliance is putting many firms in the risky position of being non-compliant. In fact, 75% of mortgage executives cite compliance as a top concern.
If you’re a mortgage lender or mortgage servicing firm that still manages its own appraisals, it’s time to divest yourself of this overhead and the compliance challenges that come with it. The most effective way to do this is appraisal outsourcing – an approach in which you outsource appraisal management and compliance by partnering with a trusted expert to take on the function in a managed service offering (MSO) model. In much the same way businesses across all industries have moved to an outsourced managed services approach to IT, banks and mortgage lenders are increasingly taking this approach with appraisal management and real estate appraisal compliance.
There are 4 key facets of the appraisal management function that are ripe for outsourcing:
- Appraisal Panel Oversight
- Appraisal Order Management
- Compliance & Quality Control
- Reporting & Transparency
The best solutions will offer you a choice. You can take a hybrid approach to appraisal outsourcing – choosing to outsource some of these functions while retaining others in house – or a holistic approach to appraisal outsourcing, deploying all appraisal-related functions in a managed service model.
The challenge for many mortgage lenders and servicers is the uncertain feeling that comes with relinquishing control. It is important to partner with a reputable appraisal management company that can prove they have the technology infrastructure, automated process management, transparency and compliance expertise you need to feel confident in your decision.
The benefits of adopting an MSO model for appraisal management are many, including:
- Simplifies your life and your business
- Continuous compliance is guaranteed
- Reduces fixed costs
- Automatically scales as loan volume grows
- Mitigates mortgage buy-back risk
- Improves appraisal quality & cycle time
Most importantly – outsourcing appraisal management and compliance reduces overhead and frees up internal resources so you can focus on growing your mortgage lending and servicing business.
To help you navigate the decision to to move to an appraisal outsourcing model, Accurate Group has created an appraisal outsourcing infographic with everything you need to know to get started.
Learn how you can reduce fixed costs, close loans faster and ensure compliance by outsourcing appraisal management – download the appraisal management and compliance infographic now.
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