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Next-Generation Valuation Management Software Platform For Commercial Lending Launches

Global DMS launched EVO-Commercial (EVO-C). The new platform is 100 percent configurable, fully customizable, quick and easy to implement, eliminates numerous steps in the workflow process, lowers system maintenance costs and empowers end-users as well as management teams, among many other efficiency gains.

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“EVO-C solves a number of major pain points and challenges that have been ailing the commercial lending space for years,” says said Vladimir Bien-Aime, president and CEO at Global DMS. “Commercial lenders have grown accustomed to dealing with manual processes or limitations of outdated, inflexible technology that prevents them from optimizing their valuation processes. The feedback we have received from commercial lenders thus far is that EVO-C eclipses and outperforms the current solutions which they are continually burdened with.”

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The EVO-C platform delivers immediate ROI to lender clients by reducing the cost to acquire, manage and review collateral valuations reports. The solution creates a competitive bidding environment where vendors are encouraged to focus on quality, communication, cost and turnaround time. Managers are easily able to monitor their pipelines in real-time for overall performance to drive down costs, remove road-blocks and create a positive experience for their customers.

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Key EVO-C Benefits:

>>Implementations can be completed in just days or weeks – not months

>>EVO-C is so intuitive and easy to understand that minimal training is required

>>Completely workflow-driven powered by a highly configurable business rules engine that does not require development or IT resources to update

>>Detailed custom reports can easily be created by business users and dynamically output on an ad hoc basis for management

>>Drag and drop capability allows for multiple large files to swiftly be transferred and auto-populated, saving immeasurable amounts of time

“We spent a great deal of time working closely with lenders to perfect a breakthrough platform that is loaded with features and functionality, which commercial lenders have never seen before,” said Michael Quaranto, chief information security officer and vice president of technology at Global DMS. “EVO-C was engineered to be hands down the most flexible, configurable and extensible commercial lending valuation management platform available on the market. We are extremely excited to demonstrate the jaw-dropping power EVO-C offers.”

Global DMS is an established enterprise-class software provider that also offers a widely-used, residential lending valuation management platform, eTrac, which seamlessly automates all aspects of the process. eTrac supports lender compliance with changing state-based rules, federal laws, the Consumer Financial Protection Bureau (CFPB) and the Dodd-Frank Act.

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Increasing Efficiencies In The Valuation Process

We all know that lenders have different ways of managing their businesses and, of course, different technologies to support their models. The method in which lenders process their appraisals is one area of the business that can also be handled using quite a few different types of technology, with some being more sophisticated and complete than others.

Touching on some of the appraisal-oriented technologies that are commercially available, you have appraisal ordering systems, analytics and scoring software, forms software, accounting software, QC software, vendor management applications, UCDP and EAD delivery technology, AVM ordering, BPO ordering, valuation management platforms and other third party applications. Now, some lenders use multiple vendors to automate the process while others use a comprehensive valuation management platform from a single vendor.

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In this article, I’ll be discussing the benefits of using a single-source vendor to automate the valuation process from start to finish in order to maximize efficiencies. I am a proponent of using fewer venders rather than more in order to centralize and optimize the entire process, allowing organizations to realize the greatest number of efficiencies. This is because involving too many vendors can create gaps in the workflow, cause communication issues, heighten compliance risks, inhibit transparency, force manual intervention, and more perils. Bottom line: too many vendors results in inefficiencies.

The overall valuation process has so many moving parts and details to stay on top of that it can be a daunting undertaking for lenders to effectively and efficiently manage. And all of these complex and intricate tasks require significant time and resources to handle. On top of that, lenders have to adhere to changing rules and regulations.

While utilization of a valuation management platform is the best method to automate the process, not all of these platforms are of the same level. There is key, must-have functionality that is needed to fully automate the process from soup-to-nuts, which many lack.

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One of the most important aspects of a valuation management platform is that it be completely workflow-driven. Most of them do not have a 100% workflow-driven architecture, so you’ll still have lots of areas that require manual intervention from your employees. In order to be completely workflow-driven, the platform must accompany a “workflow engine.” The engine applies customizable business rules which essentially plays the role of conductor, orchestrating and using auto-triggers and routing functionality to manage time sensitive events and actions at the appropriate time and stage within the process. The engine is at the core of automating the workflow, removing manual touch points, eliminating data errors, reducing costs and managing compliance. Not all valuation management platforms have a workflow engine. Without the engine, complete automation cannot be achieved.

A workflow-driven platform is also key to ensuring that appraisals are of high quality. The ability to custom-configure business rules allows you to set triggers to automatically review appraisals and analyze them in real-time throughout different stages of your workflow for completeness, accuracy, data integrity, consistency and compliance.

Effectively managing your vendors is another important aspect of a workflow-driven valuation management platform. The communication of assignments, reminders, setting tasks and providing real-time status can all be automated. Setting up reminders throughout the workflow is extremely helpful and confirms that appraisers are notified in a timely fashion as to what to do and when. This saves lots of time and ensures that nothing is missed.

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Another important part of managing vendors (whether individual appraisers or AMCs) is scoring. Things like appraiser licensing, appraisal quality, turn times, communication levels, and much more can all be automatically analyzed and scored using a valuation management platform that includes vendor management tools. Without the right technology, however, this can be time consuming, laborious and costly to do.

And then there is the accounting aspect. You should be able to automatically process credit cards and other forms of payment. Tracking AMCs appraiser payments and allowing for automatic export into the lending accounting system is paramount. Also, loan officers and borrowers should be to self-service while interfacing at the point-of-sale with the ability pay for appraisals, which is also critical to establishing an efficient process from the very start of the mortgage transaction. Lenders work with multiple appraisal vendors and getting them paid on time is important to maintaining good relationships.

Compliance is yet another area lenders need to be ultra-concerned about. There will always be changing rules and regulations that you must stay on top of or run the risk of fines and even the potential for buy-backs. A valuation management platform automates compliance so you don’t have to worry about keeping up with existing and new rules. It takes risk out of the equation, reduces instances of fraud and lowers operating costs associated with the appraisal process. The Equal Credit Opportunity Act (ECOA) Valuations Rule is but one example of a regulation that can be adhered to via automation. Per the rule, the borrower must be notified that they have the right to the appraisal report within three days of loan application, and then delivering it to them within three days of closing.

Reporting is another huge area to establish much needed transparency, vendor oversight and to understand where there are efficiencies and where there is room for improvement. Customizable reports that business people can easily create and run in real-time. This enables you to manage the specifics of your unique process in the now, not just evaluate the past. I cannot stress enough how important it is that reporting transpires in real-time. Being able to report in real-time gives you up-to-the-minute information that empowers you with insight to make the best decisions for your specific way of doing business. If reporting is light and isn’t in real-time, you cannot make adjustments as needed and on-the-fly. Lastly, in-depth reporting can demonstrate compliance in the event of an audit.

When it comes to integrations, a valuation management platform needs the ability to seamlessly integrate with the UCDP, EAD, CU, data analytics solutions, collateral review systems, LOSs and other relevant third party applications. Lenders shouldn’t have to leave their core system of record — the LOS. From within their LOS, users should be able to easily order and manage appraisals, check order status in real-time and receive the completed appraisal file back into the LOS. What’s more, the platform should have the ability to integrate with different AMC technology platforms, effectively allowing lenders that use multiples AMCs to easily distribute orders among them. Having direct access to multiple AMCs via one platform simplifies business continuity, controls costs, reduces turn times, and promotes compliance. The ability to do “champion/challenger” competition to improve turn-times based on any geographical area is essential.

There are many different choices lenders have to manage their valuation process. I recommend not relying on and cobbling together a multitude of different technology vendors that handle bits and pieces of the overall process. Instead, implement an enterprise-level valuation management platform that centralizes and automates the entire process. But make sure the system is a truly configurable, workflow-driven enterprise-level system. It’s crucial. Before selecting a vendor, evaluate the merits of everything covered in this article and you’ll be automated, efficient and more profitable.

About The Author

Vladimir Bien-Aimé

Vladimir Bien-Aimé is President & CEO of Global DMS. Since founding the company in 1999, Bien-Aime’ has grown Global DMS to capture a leading share of the appraisal segment. Its core solution, eTrac, is a SaaS-based enterprise-level valuation management platform that has helped numerous lenders and AMCs automate their processes. He can be reached at (877) 866-2747, vlad@globaldms.com, or visit www.globaldms.com.

Global’s Kinex Integrates With FHA’s EAD Portal

Global DMS has officially integrated its Global Kinex application with the Federal Housing Administration’s (FHA) new Electronic Appraisal Delivery (EAD) portal, providing its clients with direct access to the administration’s new appraisal submission tool.

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The EAD portal will allow up to 10 appraisal files per submission, and also allows the submission of up to 3 appraisal files per loan. Appraisals submitted through the EAD are always subject to an FHA compliance review, and the new portal will return both overridable and non-overridable hard stop messages when appraisal data falls outside FHA requirements.

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Accepted Forms/Data Types include:

  • Mismo 2.6 GSE Extended format:
    • Uniform Residential Appraisal Report (FNMA Form 1004; FRE Form 70)
    • Individual Condominium Unit Appraisal Report (FNMA Form 1073; FRE Form 465)
  • Mismo 2.6 Errata 1:
    • Small Residential Income Property Appraisal Report (FNMA Form 1025; FRE Form 72)
    • Manufactured Home Appraisal Report (FNMA Form 1004C; FRE Form 70B)
    • Appraisal Update or Completion Report (FNMA Form 1004D; FRE Form 442)

Global Kinex’s direct integration with the new EAD portal allows users to manage their EAD credentials, upload up to 3 appraisal files at a time, and manage the EAD submission process to address hard-stops in real time – offering automatic hard-stop overrides when available. All EAD submissions through Global Kinex are searchable, and the app will also upload the EAD SSR file as an attachment to the appraisal order when applicable. In addition, EAD submission automation is available via eTrac’s Workflow Engine app to help streamline the process even further.

Executive Spotlight: Vladimir Bien-Aime of Global DMS

Vladimir Bien-AimeToday, the Executive Spotlight illuminates the subject of valuations, and our expert on the subject is Vladimir Bien-Aime, president and CEO of Lansdale, Pa.-based Global DMS.

Q: Credit used to be the most important barometer by which underwriting used to assess risk. However, the focus on valuations is now considered as important, if not more. Why is this?

Vladimir Bien-Aime: Before the meltdown, lenders wanted to get deals done quickly and sold on the secondary market quickly. The three ‘Cs’ (credit, capacity and collateral) were all taken into account upon making the decision to lend a borrower money.

However, things like stated income were widely accepted and the submission of appraisals was not always verified for accuracy, and sometimes appraisers inflated home values. If the collateral valuation is inaccurate, then the deal could easily make absolutely no sense to do. In addition, if a there is an issue with the appraisal, then there could be investor buybacks.

But today, many things have been addressed that were previously broken in the collateral evaluation process. One of the first things done was to implement the Home Valuation Code of Conduct (HVCC) in 2009, which prohibited lenders and third parties from influencing appraisals. While HVCC is officially no longer in existence, portions of it still reside in the Dodd-Frank Act, which are working well.

Performing accurate appraisals is extremely important in the event a borrower is unable to meet the payment obligations of a loan. The underlying property serves as the collateral for the obligation and is a huge component of assuming risk. If a borrower has good credit but the collateral isn’t there to support the structure of the deal, then good credit is irrelevant.

Q: Appraisal and AVM technology have come a long way since the mortgage meltdown. What are some of the most significant advancements and where are some software providers falling short?

Vladimir Bien-Aime: Appraisal technology has advanced to effectively make use of comprehensive analytics, trending and other key factors that weren’t generally considered in the underwriting of loans. The confirmation and accuracy of property valuations can now utilize previously unused data elements that provide enhanced market intelligence. Some examples are making use of rich data sources such as multiple listing service (MLS), statistical analysis, neighborhood-level house price indexes (HPIs), inventory and sales trends metrics, and foreclosure data.

The data collected can then be translated into meaningful, actionable information that takes the accuracy and completeness of property valuations to the next level. Where some software vendors are coming up short is not taking a best-of-breed approach to produce a deeper solution that meets the needs of their lenders. These partnerships produce a holistic solution that drives efficiencies, promotes compliance and saves money.

Q: The mortgage industry now operates in a business environment that demands loans be handled with extreme precision and in 100% compliance – on so many different levels. What are lenders and investors biggest concerns with appraisals in today’s market?

Vladimir Bien-Aime: There are so many constantly changing rules and regulations lenders must keep up with that it’s become a daunting undertaking that is seemingly infinite. Lenders want to be in full compliance to avoid fines and ensure they deliver appraisals of high quality to investors without any missing information so as to prevent loan buy backs or appraisal kick backs.

Whether you’re a lender using an AMC or have an in-house appraisal panel model, you don’t want to miss a beat with compliance, having any UCDP hard stops, flagged appraisers, or fraudulent information could be disastrous. Investors and the GSEs simply want quality appraisals done in full compliance with industry guidelines that are verified and documented throughout the process. The right technology handles the heavy lifting and does the thinking for all parties involved.

Q: Global DMS automates the valuation management process. What are some of the things you are currently doing with your technology that is making a difference, and what is on the horizon?

Vladimir Bien-Aime: Our Enterprise eTrac platform automates the entire valuation management process from start to finish. This includes ordering, assigning, tracking, reviewing and delivering appraisals in full compliance to the GSE’s UCDP. Lenders and AMCs have come to rely on our technology to help them compliantly and cost effectively assess and process all of their appraisals.

We’re currently integrating with select best-of-breed vendors that add more value to our solution. Our customers are already benefiting from this. We are also expanding our mobile device offering and have plans to enhance our existing platform with advanced user definable workflow capabilities.

Global DMS is online at www.globaldms.com.

Phil Hall has been (among other things) a United Nations-based radio journalist, the president of a public relations and marketing agency, a financial magazine editor, the author of six books and a horror movie actor. Also, as you will discover, he is not shy about stating his views.

Get Rid Of Errors And Buybacks

As lenders look to eliminate unnecessary errors and buybacks, they need to look to their technology providers for help. In this case, Global DMS, a provider of Web-based valuation management software, and Platinum Data Solutions, a provider of collateral valuation and risk assessment technologies, have integrated Platinum Data’s RealView appraisal quality software into Global DMS’ eTrac appraisal management platform, allowing for quick and easy access to appraisal quality and compliance analytics.

Organizations that are using Global DMS’ eTrac Enterprise platform to automate their valuation process now have seamless access to Platinum Data’s RealView collateral valuation business intelligence technology directly from within eTrac. RealView uses configurable business rules to quickly analyze each appraisal’s quality and compliance. As a result, joint clients are able to efficiently manage the valuation process and analyze all appraisals for the thousands of different factors that can compromise appraisal quality.

“The combination of these two best-of-breed solutions provides the highest level of quality and efficiency in collateral valuation process,“ said Vladimir Bien-Aime, president and CEO of Global DMS. “The integration of Platinum Data’s RealView product into our eTrac platform facilitates the thorough assessment of collateral to allow mortgage lenders to make better business decisions. Put simply, this collaboration reduces fraud, lending costs and overall risk.”

Platinum Data’s RealView solution takes only a few seconds to review, analyze and score appraisals according to standard and user-defined business rules. Scores range from 0 to 1,000 and cover four factors: the appraisal’s overall quality, as well as its compliance, credibility, and complexity. Users may configure an unlimited number of custom business rules, which can be implemented in a matter of hours or days, not weeks or months, thus empowering companies to swiftly respond to marketplace changes.

“Manually evaluating appraisals is one of the most tedious, time consuming activities in the underwriting process, and unless you use a technology, it’s virtually impossible to achieve any consistency in the practice,” said Phil Huff, CEO of Platinum Data. “This integration is enabling a whole new group of lenders and AMCs to achieve unquestionable appraisal quality and compliance faster and easier than ever before. We’re pleased to be integrating with Global DMS. Like Platinum, they are dedicated to removing any barrier to appraisal quality and compliance.”

Once appraisals are run through RealView, Global DMS can automatically deliver them to the Uniform Collateral Data Portal (UCDP) in full compliance and without missing information or errors.

About The Author

[author_bio]

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Partnership Provides Deeper Valuations

Global DMS, a provider of Web-based compliant valuation management software, and Collateral Analytics, a provider of real estate analytics and valuation products, have formed a strategic alliance that integrated various components of their software valuation solutions. From within Global DMS’ single-source eTrac Enterprise platform, which compliantly handles the entire appraisal management process, users can now access Collateral Analytics’ products and services that include its automated valuation model (AVM) services, data analytics products and risk management solutions.

“There are many factors that must be taken into account in order to determine accurate property valuations and reporting in today’s market,” states Vladimir Bien-Aime, president and CEO of Global DMS.  “This new partnership extends to our customer base Collateral Analytics’ sophisticated data analysis capabilities that produces precise reports on valuations, market analytics and risk scores.”

Collateral Analytics’ AVM service provides highly accurate property value estimates with supporting data for forecasting and decisioning; its data analytics products also report on historical and current home price trends as well as forecast future trends and market condition.  In addition, the company’s risk assessment tool, CA Risk Profiler, determines the probability of valuation risk for BPOs and appraisals based on the use of numerous data points.

“Global DMS has done a tremendous job in building a platform to bring automation and compliance to the entire valuation management process for organizations operating in the appraisal business,” said Michael Sklarz, president and CEO, Collateral Analytics.   “Our solutions complement one another well and make for a robust offering that can be seamlessly accessed by Global DMS customers. We are very pleased to have established such a strong partnership with Global DMS.”

Global DMS’ eTrac Enterprise platform empowers organizations to order, assign, track, review and deliver completed appraisals in full compliance to the Uniform Collateral Data Portal (UCDP) for sale to investors and GSEs.  Both Global DMS and Collateral Analytics’ solutions can apply customizable business rules for clients to manage their specific internal processes and procedures.

The combined solutions significantly reduce costs, drive appraisal review efficiency gains, and deliver greater accuracy, reliability and time savings.

It’s All About Results

*It’s All About Results*
**By Tony Garritano**

TonyG***Technology makes a difference. I always like to tell you about success stories. In this case, Global DMS, a provider of Web-based compliant valuation management software, announced that Appraisal Nation, one of the country’s fastest growing national appraisal management companies (AMCs), reported that since implementing Global DMS’ eTrac platform it has increased the number of appraisals it was able to process by more than tenfold.

****Global DMS’ solution streamlined Appraisal Nation’s entire valuation process, created newfound efficiencies, established ease of doing business and ensures the company is in compliance at all times. Appraisal Nation relies on Global DMS’ eTrac platform as a single-source solution for assigning, tracking, reviewing and delivering appraisals to the Uniform Collateral Data Portal (UCDP) in full compliance, and without errors or missing information for both the residential and commercial aspects of its business.

****“Appraisal Nation’s customer service has always been exceptional. Our unwavering commitment to clients is seen in everything from customized solutions to our extended service hours (8 a.m. to 9 p.m. EDT),” stated Michael Tedesco, CEO of Appraisal Nation.  “But it was the addition of Global DMS that has been instrumental in rapidly expanding our business; we couldn’t have achieved this accelerated rate of growth without their technology.  Global DMS’ integration into multiple mainstream LOSs has helped us to compete and win against some of the largest AMCs in country.  Using Global DMS, we’ve become a finely tuned AMC operation.  Our customer service is now backed with top technology and when you add that to our already established reputation of producing quality appraisals expeditiously, it truly sets us apart from the competition.

****Global DMS’ Web-based eTrac system allows AMCs to manage appraisal vendors, order, assign, monitor status, fulfill, review, sell, report on and handle accounting practices for appraisal transactions. The solution keeps organizations apace of constantly changing appraisal rules, thus allowing them to avoid potential fines.

****“The tremendous success that Appraisal Nation is having using our valuation management platform is a testament to the efficiencies our solution brings to the table,” says Vladimir Bien-Aime, president and CEO of Global DMS.  “Appraisal Nation is one of many client success stories we have that showcase the positive impact our solution delivers.”

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: Are You Confused?

*Are You Confused?*
**By Tony Garritano**

***I have been pleasantly surprised at to how well the industry has responded to the new appraisal rules. I remember the issues with RESPA. And loan officer compensation was tough for most to comply with when it hit earlier this year, too. I think the ease of compliance this time is due in part to how vendors have responded with quality educational pieces. For example, Global DMS did a great white paper. If you’re still confused, here’s how they describe all the changes:

****“UAD stands for Uniform Appraisal Dataset, and is a component of the Uniform Mortgage Data Program (UMDP). UCDP is the Uniform Collateral Data Portal, and is also a component of the UMDP. While these programs will work in conjunction with each other, there are distinct differences in the programs and the requirements.

****“The GSEs define the UAD program as:

****“All fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields. The UAD-compliant file can be delivered in either a PDF or an XML file. However the UAD program DOES NOT need to be delivered in an XML format. The MISMO 2.6 XML file is required for the UCDP, although you can submit a PDF file to the portal and the information can be extracted into an XML file for a fee.

****“The GSEs define UCDP as:

****“A single portal for the electronic submission of appraisal data files. Lenders will be required to use the UCDP to submit electronic appraisal data files that conform to all GSE requirements, including the Uniform Appraisal Dataset (UAD) when applicable, before the delivery date of the mortgage to Fannie Mae and Freddie Mac. The general UAD process will be driven by the appraisers. The appraiser will be responsible for delivering the appraisal file in the required UAD format. The delivery to the portal will be driven by the lender. The lender can deliver the file to the GSEs, or have an Appraisal Management Company (Agent) deliver the file on their behalf.”

****It was a great white paper. To read more go to the Global DMS website or the PROGRESS in Lending iPad app. It’s a great read!

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.