HVCC Compliance is causing major headaches and massive delays within the industry. Currently the industry is scrambling for a headache free solution which will enable them to get the best possible service and for the client and the customer to be satisfied with the overall transaction. Currently there are very few companies which offer a totally HVCC Compliance solution that meets any reasonable customer service expectations.
As always its not just about getting the appraisal done but "how" the appraisal gets done is just as important as the appraisal document itself. Most borrowers and loan officers aren't in total illusion to the market and most understand that property values are declining and that the majority of homeowners owe more than there home is worth. What they don't understand is why it takes so long to get the appraisal scheduled, inspected and final report delivered. Another compliant throughout the industry is that if the appraisal is going to take as long as it does why does the appraisal have errors and seems as if the appraisal was just "thrown" together. These are valid concerns as typically once the appraisal is ordered its pretty much a done deal if the value is sufficient to support a loan.
Back to Basics
Its essentially about communication,attention to detail,service and pull through. Everyone claims they have the best customer service, the latest technology and the most experience. But where they drop the ball is the effectiveness in which these processes relate to each other and how they leverage these technologies and process to enable a better overall deliver and a quality product done in a timely and professional manner.
So what is are the 5 must for a headache free compliance solution?
1. Its not in the size of the company but in the relationships with the vendors that make the difference. Look for a company that has truly established relationships with vendors throughout the nation that can get your appraisals done fast and correctly. Without the relationships you have nothing,its really that simple. An appraisal company could have a staff of 50,000 customer service representatives but if the appraiser thinks the person is not knowledgeable about the business and is just a CSR in a call center making a routine call you can forget about the vendor wanting to deliver and preform.
2. Vendor Fees - A company that will pay the appraiser a reasonable fee for there work will not only have better vendor relations but much better appraisals and apprasiers on there fee panel. Regardless of what USPAP requires and standard underwriter requirements. The cheaper the appraiser the worse the quality of the work will be. Having minimum's for vendor payment as well as a clear pricing structure will ensure that when things do get busy all of your work isn't pushed to the side in replace of higher paying FHA or attorney work.
3. Experienced Staff is just as important as the appraiser doing the appraisal the reason is simple, respect. Having staff who are in contact with the vendor who are experienced, knowledgeable, organized and proactive will make sure the vendor understands that this is serious business and that we are in no position to try and pull anything or slack off because these guys are pros. We often get complements from our lenders and appraisers that when someone has a question there is always someone in our office who knows the answer or can get the answer very easily. This will incentive the appraiser to do a better job but also the lender will truly feel as if they have a person and a company they can rely on.
4. Team focused account management - As they say when you chase two rabbits you lose both. This goes for the appraisal world just as much. A typical appraisal requires a minimum of 30 - 45 minutes of hands on work. Some more complex propeties might take up to a 8 hours of work one on one with the vendor. This can be collecting payment, assigning the appraisal, scheduling the appraisal, checking on the stauts, communicating revisions, review, invoicing and final delivery. All clients have a different way of doing things and a different way there account should be managed. Without having a designated team to manage the account things will slip up and slip up fast. The reason is simple, focus and extreme focus is what is needed for properly managing the appraisal process from start to finish.
5. A written, signeed, service level agreement. A document outlying the entire process, expectations, assignment, delivery, billing, QC, review, turnaround, vendors, customer service and pull through is vital to a win-win relationship. This is one of our main focuses when starting with a new customer. Hammering out the details will let the customers really figure out what they want but also assist you in managing your expectations to what good service really is and what the default resolution procedures should be for the account management process.
All of these are very important and focusing on the above 5 when choosing a vendor to work will enable your company to be successful.
For more information:
www.coesterappraisals.com
