Have you heard? Traditional home appraisals are no longer the industry standard. The appraisal process has been long overdue for modernization, and appraisal management technology is quickly becoming the go-to strategy for lenders, servicers and loan originators looking to speed up loan cycle times without sacrificing quality or accuracy. It was only a matter of time before the industry caught up.
Fannie Mae Selling Guide Embraces Appraisal Modernization
Recognizing there is a more efficient appraisal process to maximize appraiser efficiency, Fannie Mae updated its Selling Guide to shift the focus to alternative appraisal methods – like desktop appraisals, hybrid appraisals and the new Value Acceptance + Property Data option.
“Fannie Mae is on a journey of continuous improvement to make the home valuation process more efficient and accurate,” the government-sponsored enterprise states in its updated Selling Guide. “We’re transitioning to a spectrum of options to establish a property’s market value, with the option matching the risk of the collateral and the loan transaction. The spectrum balances traditional appraisals with appraisal alternatives.”
Third-party data collectors can collect property information as long as they are vetted through an annual background check, professionally trained, and have the essential knowledge needed to perform the property data collection.
As an early leader in appraisal technology innovation, we have been anticipating desktop and hybrid appraisals would evolve to the default home valuation option. As such, AppraisalWorks already offers lenders a turnkey cloud platform for appraisal modernization – complete with the desktop appraisal, hybrid appraisal and mobile data collection technology needed to comply with Fannie Mae’s Value Acceptance + Property Data guidelines.
The AppraisalWorks platform is also agnostic when it comes to who performs appraisals – providing support for in-house appraiser panels, independent appraisers, and multiple Fannie Mae-authorized appraisal management companies (AMCs) with proven experience in complying with the Value Acceptance + Property Data framework.
With Fannie Mae’s growing preference for valuation modernization, it’s time to assess if your appraisal management technology aligns with new industry standards.
Why Prioritize Appraisal Modernization?
By leveraging an appraisal management system, lenders and servicers can streamline and automate labor-intensive back-office processes such as selecting an appraiser, scheduling property inspections, maintaining E&O insurance, licenses and other tedious – yet critical – elements of the appraisal process. But appraisal management technology is not about improving administrative functions. Appraisal management systems are the backbone of an appraisal modernization strategy, which is why the time is now to adopt appraisal management technology.
Five Reasons to Embrace Appraisal Modernization
Appraisal Management Technology Allows You To:
- Accelerate appraisal turn times from weeks to days, without sacrificing quality. If it takes your business 18 days to complete an appraisal and it takes your competitors 4 days to complete an appraisal – who do you think the consumer will choose?
- Improve customer experience by providing transparency to consumers throughout the entire process. If your team is scrambling to find out the status of an appraisal order and must give the borrower a guesstimate of when their appraisal will be completed, using potentially outdated time logs – how happy will they be at the end of the process? It is time to think about how to facilitate seamless collaboration between property inspectors, appraisers, and lenders/servicers.
- Build a full cascade of technology-driven appraisal offerings, including desktop appraisals, exterior and interior hybrid appraisals, and mobile property data collection. How often do you lose an opportunity because you cannot service an area or complete an appraisal within a specific timeframe? Does your competition leverage appraisal management technology that gives them an advantage in delivering better, faster, and more accurate appraisals? If so, it is time for a change.
- Enable property inspectors to collect detailed data, including photos and floor plans, using a mobile phone or tablet device. Mobile inspections conducted by certified experts are where the industry is trending. Does your strategy and technology support data collection? The right technology enables you to accelerate turn times and delivery greater accuracy.
- Leverage a powerful data API, including valuation and inspection data for process automation, smart workflows, and easy integration with digital mortgage platforms. Back-office administrative automation is just beginning. Appraisal management technology supports digitization of the entire appraisal process.
If the updated Fannie Mae Selling Guide tells you anything – it’s that appraisal modernization has become a must have. Lenders, originators and loan servicers are all rapidly adopting technology to support desktop, hybrid and Fannie Mae’s Value Acceptance + Property Data initiative.
How Does Your Appraisal Management Strategy and Technology Stack Up?
Check out our whitepaper, Choosing the Right Appraisal Management Platform, and our latest eBook, 5 Benefits of Digitizing Appraisal Management, for insight on best practices to make sure your appraisal management strategy stacks up.
And if you’re looking for technology to support your valuation modernization efforts, AppraisalWorks delivers desktop appraisal, hybrid appraisal and mobile data collection technology needed to comply with Fannie Mae’s Value Acceptance + Property Data guidelines and provides lenders with an easy-to-use cloud platform supporting all industry valuation modernization initiatives on the market today.
AppraisalWorks also includes title and closing services, making AppraisalWorks a full-service platform helping lenders improve operational efficiency without sacrificing quality or compliance. Unlike other platforms, you can order multiple products on one loan, giving you the strategic advantage.