Choosing the Best Modern, Nationwide Appraisal Management Partner
May 13, 2021
Finding a valuations partner who is up to speed on the myriad of new laws and regulations may feel like a daunting task. Fortunately, it’s possible to differentiate the modernized leaders in the appraisal industry from the uninformed, run-of-the-mill providers. George Paquette, Chief Appraiser at Springhouse®, discusses how to select the best, most modernized appraisal management company (AMC).
Search for AMCs Who Are Helping Shape the Industry
Since the collapse of the U.S. housing market, a slew of new rules and regulations have been created to build it back up. Unfortunately, Paquette says, “There are appraisal management companies that are simply not aware of the industry changes that are heading our way.”
A good valuations partner, Paquette continues, “must demonstrate that they are active in the industry.” Springhouse “is actively working with the government sponsored enterprises (GSEs) to stay ahead of changes in order to keep our clients safe and help them see what’s on the horizon.”
When searching for a valuations provider, ask them if they are up to date on the most current rules and regulations in the appraisal industry. Are they meeting and working with the GSEs? Are they helping to develop new regulations that will strengthen the industry? Paquette believes that getting answers to these questions is crucial because they give insight into whether a valuations partner can handle upcoming changes in the market.
Choose Nationwide Appraisal Providers
The appraisal process can be slow. Yet, nationwide valuation partners tend to be faster and have compliance that is more stringent. Local providers may work well on a small scale, but for originators who lend nationwide or in large regions, it’s beneficial to work with a provider who has a larger presence. It makes sense, then, to choose a nationwide AMC. Do your research to ensure that the nationwide and local presence of the AMCs you are considering align well with your footprint.
Find the Top Performers Using Data
The best-performing appraisers track their performance data to stay on top of trends and predict when and if a transaction is starting to go sideways. Using their data, an AMC should be able to identify the top performers in most markets and create a strong partnership with them. Large AMCs have the unique advantage of keeping appraiser partners busy with orders all year long. They also have the bandwidth to create a strong allegiance with their partners. “When searching for an AMC, make sure to ask them to review their data with you,” Paquette suggests. “This is the fastest way to see if they have a strong nationwide presence as well as how they have performed over time.”
Look for AMCs Who Have Invested With Other Nationwide Partners
Data and analytics also play a big role during the review process. If an AMC has not invested in a solid partnership to have the tools to adequately review appraisals, it is very likely that there will be higher-than-normal revisions and a slower overall lifecycle for each appraisal.
Paquette says, “Springhouse has invested in deep integrations with multiple nationwide data providers to ensure that we are armed with not only automation tools to review appraisals during submission but also to provide our manual review team the resources to quickly identify discrepancies which can cost days or weeks down the road to fix.”
The regulatory changes over the last few years have sent waves through the appraisal industry. Keeping up with new laws can be difficult, which means it’s vital to find an AMC who can contribute to changes in the industry alongside the GSEs. Ensuring that an AMC is also a nationwide provider who uses its data to form partnerships is also an important part of the process of finding a strong valuations organization. Together, these methods will help you select the best, most modernized AMC to drive your business forward.