ANNAPOLIS, Md.--(BUSINESS WIRE)--Appraisal Logistics, the leading provider in compliance risk management for appraisal independence, announced today the availability of its proprietary Internal Management Cost Calculator built to uncover the true cost behind internal appraisal management. Using this calculator, lenders will be able to determine the most appropriate avenue for achieving and maintaining appraisal independence standards by exploring an alternative appraisal strategy.
The Cost Calculator breaks down the internal management process line-by-line so that users can input specific data and receive a true estimate of bottom line cost. The calculator takes into account overall loan and appraisal volume, appraisal management platform costs (if any), appraisal fees, dedicated staff salaries and operations requirements for working independently of loan processing staff.
Birgitta Natale, Mortgage Operations Manager for United Nations FCU said, “We spent eight months going through a careful appraisal management review and selection process. We determined there would be significant advantages to outsourcing the management process, and in fact, managing the process internally would increase our risk – we need specialists to keep up with moving regulatory targets. Throughout this process, we were able to reduce our overall cost per loan, produce stronger appraisals and decrease our compliance risk.”
Appraiser independence standards within the Dodd-Frank Act, known as AIR, is a code of conduct that now applies to all mortgage financing. Lenders are required to ensure appraisal independence in order to support the industry’s goal of reasonable financing. According to the Interagency Appraisal and Evaluation Guidelines, “an institution should not select a valuation method or tool solely because it provides the highest value, the lowest cost, or the fastest response or turnaround time.
Frank Danna, CEO with Appraisal Logistics said, “Independently, these criteria will not provide complete compliance coverage, or a quality appraisal. Furthermore, the Guideline states that loan production staff cannot be at all associated with the appraisal review process. For smaller community banks with fewer dedicated staff, it becomes challenging to differentiate between loan production and appraisal management. This management calculator provides institutions with a means to investigate the actual expense of an in-house appraisal process. If lenders are not investigating their options in some form, then it is a missed opportunity to quantify what current expenses are, and could be, by selecting a different approach.”
Frank Danna, CEO for Appraisal Logistics, will be a featured speaker in Valuation Review’s upcoming educational webinar, “The Perfect Appraisal: Building A Reputation That Feeds Business Growth” on March 8 at 2 p.m. ET. Click here to register for the event.
About Appraisal Logistics
Appraisal Logistics is the leading provider in compliance risk management for appraisal independence. With a team of industry experts and a nationwide network of highly qualified and trusted appraisers, Appraisal Logistics provides immediate and exceptional service to regional and community banks and standalone mortgage originators to ensure each appraisal is 100 percent compliant in a customized, customer-focused environment. For more information, please visit www.gotoals.com or call (443) 949-7862.