When completing construction lending appraisals, banks and lending organizations must consistently ensure appraisers are engaged independently and not unduly influenced. Bottom line – the appraisal cannot be impacted by any undue bias.
To complete this task, lenders may choose to manage the appraisal process in-house using an internal team or enlist the use of an Appraisal Management Company (AMC) to fulfill this role. While the lure of managing the process in house may be appealing, it may come with inherent risks. Read on for three top benefits when considering trusting your appraisal needs with a capable AMC:
1) Comprehensive Compliance Management and Supervision
It’s no secret that mortgage lending is a highly regulated industry. All players within the industry are subject to ever-changing guidelines combined with a myriad of government regulations. When it comes to property valuations and mortgages, there are no exceptions.
AMCs are dedicated to managing the entire appraisal fulfillment process, typically offering a seasoned compliance department with their fingers on the pulse of the changing regulatory environment.
2) A Dedication to Responsiveness
An experienced AMC will offer dedicated resources to know the bank’s unique needs and ensure the highest quality of service. Indeed, an assigned contact within the AMC will be capable of chasing down appraisal information, answer any questions, and keep a lender updated on the status of an appraisal, thereby allowing the bank or financial institution to maintain continuity throughout the order process.
3) An Exceptional Quality Control (QC) Process
Working with a third-party appraisal management company provides extra eyes and ears for each completed order. Finding and vetting appraisers becomes the onus of the AMC, ensuring they locate the best appraisers with the relevant professional experience, background, training, and education. Additionally, AMCs, who must compete for business, use their combined learnings – from small regional banks to large national players – to create a “best in breed” QC (second review) process.
At Trinity, we offer an appraisal department directed by a leader with over 40 years’ experience. Our team of professionals exist to simplify the process, help you keep timelines on schedule, be a variable expense and close loans faster (within current market conditions). We offer a broad portfolio of services, and we’d love to help! Give us a try!