Don’t throw AMCs under the bus

Don’t throw AMCs under the bus

We read with interest a recent academic survey of mortgage brokers (published in European Business Journal in March 2015) on the perceived impact that appraisal management companies (AMCs) have on mortgage brokerage business. I’m sure you’re not surprised (we weren’t) to hear that mortgage brokers don’t like AMCs. Brokers in general believe that AMCs limit their ability to do business profitably. We would disagree with that impression and would like everyone to remember that not all AMCs are created equal.

Of course there are a small minority of greedy AMCs out there, just as there are a small numbers of greedy brokers and lenders still left in the business. But the majority of AMCs play a very important role in the real estate lending ecosystem – a role designed to promote consistent, repeatable valuation processes across geographic markets and produce accurate appraisals that protect both the lender and the borrower. In addition, Accurate Group has chosen to become the industry’s first AMCC – Appraisal Management and Compliance Company – specifically to help lenders maintain compliance with complex and dynamic regulations.

As your AMCC, Accurate Group delivers value to both lenders and appraisers.

Lenders benefit from:

Compliance –Accurate Group provides lenders, credit unions, mortgage bankers and brokers with an end-to-end compliant appraisal process that meets the regulatory requirements of the OCC, FDIC, OTS, and Federal Reserve. In addition, Accurate Group provides each of its lenders with an Accurate Audit™ Kit to ensure they are always prepared with the documentation they need to demonstrate compliance in the case of an audit.

Appraiser Independence – Accurate Group ensures that appraiser independence requirements are upheld resulting in independent valuation opinions that both lenders and borrowers can rely on to ensure safer investments.

Appraiser Qualification – Accurate Group qualifies appraisers during the on-boarding process to ensure the appraiser meets or exceeds minimum education, experience, licensing, insurance, and background standards. We monitor and ensure appraisers possess valid license and insurance credentials. Using technology, we provide our lender-clients full transparency on the qualifications of every appraiser used for their work as required by bank regulators.

Appraiser Selection – Accurate Group has developed an assignment logic to select the best performing appraiser, closest to the subject property. Our assignment logic incorporates maximum distance requirements to ensure appraisers are not traveling vast distances to perform appraisals. The order assignment is verified and documented in our assignment compliance report.

Turn Time – Our appraiser scoring and assignment logic incorporate appraiser turnaround times for all aspects of the appraisal process. Our focus on timely cycle times ensures that lenders do not feel “slowed down” by having Accurate Group involved in the process – and in fact they may experience faster response rates.

Quality – Accurate Group’s customized, multi-step appraisal review process significantly reduces appraisal revisions and improves overall appraisal quality and salability.

Pricing – Accurate ensures appraisers are compensated with reasonable, customary and competitive appraisal fee in all markets, regardless of location. Our appraisers are paid on a regular, timely and consistent schedule for the work they perform.

Innovation – Pioneering alternative USPAP-compliant appraisal products such as ValueNet to help relieve the burden of the appraiser shortage while also helping mitigate unnecessary cost to lenders.

Reg. B – Our e-Sign compliant electronic delivery of the appraisal to the borrower accelerates loan closings. Delivering the appraisal electronically opposed to mailing significantly reduces cycle times.

UCDP – Our ability to upload UAD compliant reports to UCDP improves operational efficiency and reduces cycle times.

Operational Efficiency & Business Growth – Accurate Group’s Managed Services Offering offloads the administrative burden and fixed overhead costs of managing real estate appraisals and related compliance requirements, so lenders can focus on growing their core business.

Appraisers benefit from:

Access to More Lenders – Accurate Group allows appraisers to conduct business with lenders and credit unions of all sizes by meeting and exceeding the strictest privacy and security requirements. By meeting these requirements Accurate Group opens up more opportunities for appraisers that otherwise could not meet the privacy and security requirements mandated by lenders and credit unions.

Fair Pricing & Timely Payment – Accurate Group ensures appraisers are compensated competitively in all markets, regardless of location and guarantees timely payment.

Location & Skill Specific Assignments – Our assignment logic is automated to ensure fairness and is designed to select the appraiser providing the best service and quality that is closest to the subject property. Our proprietary quality and service scoring technology helps appraisers enhance work performance and improve their business models.

More Profitable Business & Access to Leading-Edge Technology – In addition to factoring in appraiser proximity to save travel time and fuel costs, Accurate Group also provides automated appraisal checking tools that allow appraisers to find and fix any errors prior to submission. This virtually eliminates revision requests, again saving appraiser time. Appraisers who join the Accurate Group network gain access to a technology portal that allows them to establish and maintain a profile, manage license and E&O documents and configure assignment settings for easy acceptance of new opportunities.

Focus on Quality – Unlike many AMCs who allow only a 24-hour window for completion of an appraisal report, Accurate Group provides appraisers with 48 hours after the property inspection to complete the report. This affords appraisers the time necessary to develop a high quality appraisal.

More Opportunities for Business Growth – We have multiple income opportunities for appraisers through both traditional appraisal services and desktop appraisal services. Appraisers can choose to be on one or both panels, a decision we let them make. In addition, top performing appraisers are rewarded with more business. Accurate Group’s fast year-over-year growth rate ensures appraisers gain long-term opportunities by partnering with us.

Educated Team & Collaborative Relationship – Our staff of experienced, certified appraisers are available to offer advice to and collaborate with appraisers who are having problems with a particular assignment. All of our employees who have contact with appraisers have received USPAP training.

We believe that AMCs are critical to the long-term success of the mortgage industry, and we are committed to building strong partnerships with both our clients (banks, credit unions, mortgage lenders and servicers) and our nationwide network of appraisers.   If you want to ensure you are working with best – choose Accurate Group as your AMCC partner. Contact us today.

Back to Blog

Comments are closed.