Using Data to Drive Performance

Let’s face it … there are valid concerns that every lender has when it comes to appraisal quality, and the options for lenders to purchase data to aid in the decision-making process is endless.

Is there a clear solution on how to use this data in order to drive performance? Does merely having access to data really help in making better lending decisions quicker and with more confidence? How much time is spent digesting the information in order to make these decisions? Everyone agrees that there is a real need to reduce risk, increase efficiency and improve quality in the lending universe.

So how can the use of data help lenders address these concerns on an ongoing basis?

1. In today’s highly regulated environment, reducing risk is a must. This is especially true for lenders who outsource to multiple AMCs. Lenders have to ensure that each AMC has policies and procedures in place to ensure 100 percent compliance on every transaction, every time. The decision of “appraiser selection” becomes critical for lenders who understand the need for a real solution that mitigates risk, allowing lenders to place orders that are automatically assigned to an appraiser based on location and past performance. A solution that has a trusted performance-tracking algorithm built into the back-end that will ensure compliance with appraiser selection without having to manage multiple AMCs.

2. Increasing efficiency and reducing cycle times means cost-savings to lenders per loan/transaction. As it stands, there are many touches on an appraisal report throughout the loan process. The appraiser, AMC and underwriter all perform the same quality control (QC) re- view, which results in redundancies and increased costs. The ultimate solution would allow the underwriter to trust the QC review already performed and focus solely on the collateral review. A solution created through collaboration of data through public records, MLS and prior appraisals, which allows the UW to easily compare and contrast information to make a decision. The benefits to this solution? Review appraisals are quicker, use reliable data you can trust to complete more reviews in a day, and increase your confidence in decision-making.

3. Improving quality can be in the form of appraiser selection, quality of appraisal report and even the quality of data used to make a lending decision. With the right technology application, Reducing risk, in- creasing efficiency and improving quality can all be addressed in one solution. Lenders need technology where they can easily place and track appraisal orders, leverage the best appraiser automatically for the assignment, as well as access meaningful and reliable data that enhances the decision-making process.

How is your data working for you? I’d like to hear from you. Let’s talk at JPilgrim@Nationwide-Appraisal.com

Joni Pilgrim is the founder and director of sales and business development at Nationwide Appraisal Network. For more information, visit NAN HERE or call (888) 760-8899.