Take a Deep Breath...It's Autumn

While the housing market is still experiencing high demand and everyone in the real estate industry remains busier than usual, the hectic pace of the past 18 months is finally starting to slow down. Just as the weather is cooling off, so is the housing market, if only a little.

Now that it’s autumn, we’re suggesting that lenders take a deep breath and look around. Take stock of where you are and pat yourselves on the back for surviving the last year and a half. Also, see how you can prepare yourself and your office to work more efficiently and provide the best service possible to your customers, now that you have the time to focus on something other than the day-to-day.

Here are some questions to ask yourself on the appraisal management front:

• If you manage appraisals internally, is that working for you??Many lenders find that it’s a costly distraction from their core business and contributes to?margin compression. Outsourcing to an AMC costs lenders nothing and takes that burden away.
• If you’re already outsourcing,?is your AMC paying their appraisers “customary and reasonable fees” as required by the CFPB??Many AMCs don’t pay their appraisers fairly, which means they don’t get the best appraisers to work for them and they can’t expect speedy turnaround times.?With the CFPB under new leadership, we expect more active enforcement. Look for AMCs that pay their appraisers fairly and quickly to get the quality and service you and your customers deserve.
• Are your real estate agents realistic about closing dates when they draft their contracts??While we expect?appraisal turn times?to speed up as the market slows down, it’ll take a while to get back to normal. In the meantime, unfortunately,?a 30 day close is still unrealistic. Setting reasonable expectations all around and working as a team helps.

If you’re disappointed with your AMC - or you’re not happy managing appraisals internally - here are?12 questions you can ask any AMC?to ensure you’re working with a true partner. Look for an AMC that follows CFPB guidelines and treats their appraisers well. Also, ensure your AMC partner is realistic in setting turn times and can meet them.

We hope you enjoy this autumn season of change and have a chance to rest, recharge, and focus on enhancing your business.