An underrated area of technology that I believe deserves more consideration is proprietary appraisal management company (AMC) technology. The LOS has gained so many technological advancements over the years due to allowing third-party vendors, such as AMCs, to provide added value through a direct integration, increasing overall usability and productivity for lenders. AMC technology is the quiet force behind the LOS, providing a full range of appraisal order fulfillment transactions, specifically order placement, status updates and delivery of the completed appraisal report along with the raw valuation data behind it. By combining AMC technology with the LOS, lenders can accelerate and optimize appraisal order processing through seamless connectivity, ease of use and built-in compliance processes.
Through a direct connection with the lender’s preferred LOS, AMC technology can augment the loan origination collateral valuation workflow through increased management of business process automation. The seamless connectivity creates an automated interaction in a solicited or unsolicited way, depending upon the platform. In a solicited transaction between the LOS and AMC, a human being (lender) is interacting with the integrated AMC solution through the LOS – an actual person is triggering the request for the order and statuses on an order. An example of a common solicited transaction is the initial appraisal request. In an unsolicited transaction, the two systems talk to one another without human intervention as the order goes through its valuation lifecycle – all statuses and data are automatically updated along the way within the LOS.
Another primary benefit of AMC technology is its ease of use. By marrying AMC technology with the LOS, lenders no longer have to use multiple systems to get the job done. They are now only expected to know how to use one and only one system to conduct regular tasks within their preferred LOS while providing end-to-end valuation services. This significantly reduces the extensive learning curve involved with understanding the intricacies of an AMC’s client portal and how to place a valuation order, how to receive updates on order milestones, how to get a completed report back, etc. It is all internally managed within the LOS system for the lender.
Also, the built-in processes within an AMC order management platform help manage the cumbersome regulatory requirements that lenders must comply with. For example, AMC technology’s compliance solution meets updated standards associated with Regulation B, which requires creditors to provide applicants with free copies of appraisals, AVM reports and all other written property valuations developed in connection with a credit application. In addition, some AMC technology is based on MISMO data standards so that the data can be more easily shared across all systems, which speeds the valuation process and ensures full compliance. This is particularly beneficial to lenders in the event of an audit when the lender quickly needs loan level data sent back in a readily standardized format. Today’s audits are getting deeper. Auditors are no longer just auditing summary-level data; they are auditing loan-level data and they want to review the valuation itself. AMC technology houses that data and automatically directs it back to the LOS.
AMC technology professionals must always anticipate future changes to the industry – both operational and regulatory – to adopt systems and capabilities within their integrated order management platforms to continue effectively managing the lender’s business processes while also maintaining compliance. As an engine designed to offer seamless connectivity, ease of use for the user and maintain regulatory compliance, I think lenders should be more impelled to consider AMC technology as an extension of the lending process.
About The Author
Wayne Smith is vice president of technology at LRES, a national provider of residential and commercial valuations and asset management for the mortgage, banking, credit union and real estate industries. For more information, visit http://www.lres.com.