Appraisal Logistics, a provider of high quality, compliant appraisal management solutions for the residential mortgage industry, announced today that the company has updated its Internal Appraisal Management Cost Calculator to better reflect the expenses lenders can expect to pay to handle the collateral valuation function in house. The tool is designed to help lenders better anticipate the expenses they will incur for handling this work and to calculate the Return on Investment of outsourcing this work to an AMC.
“It’s very difficult to calculate the true ROI achievable for outsourcing any function if you don’t have a very good idea of what it will cost you to perform the same function in house,” said Frank Danna, CEO of Appraisal Logistics. “We developed this tool to give lenders a view into the internal expenses they will incur should they choose to handle the collateral valuation function internally. Without taking all of these expenses into account, lenders may feel that outsourcing to a particular AMC is generating a return when it is not. At the same time, a more complete view of internal expenses will make comparing potential AMC partners easier.”
Appraisal Logistics has earned the important ISO 9001:2015 Certification, awarded by LRQA, a Lloyd’s Register Company. Despite this clear differentiator, Danna still feels that lenders must also evaluate potential AMC partners in terms of the ROI they will receive from partnering with them.
“Lenders should only be working with firms that care enough about their businesses and their customers to invest in third-party certifications to back up their own claims,” Danna said. “That should only be the price of entry for a relationship with the lender. Any outsourcing partner must be capable of demonstrating a clear ROI. Our calculator is free and will allow a lender to evaluate the ROI of any prospective AMC partner.”