Is Your Current AMC Meeting Your Turn Time?

Like almost every other industry in the US, the coronavirus health pandemic has adversely affected the country’s housing market in many unexpected ways since March. There is no doubt that extremely low interest rates and surges in mortgage applications have now created a backlog many organizations are struggling to manage.

As a mortgage broker, you know a significant bottleneck to getting approval for financing is the time it takes a real estate appraiser to:

1. Research comparables and other data on the relevant property.
2. Visit the relevant property.
3. Complete and submit the appraisal report.
4. Have the report approved by the bank or lender. 

This is also known as appraisal turn time.

It is clear that appraisers are especially having a difficult time keeping up with the increasing volume for refinance as well as purchase mortgages. This increases the turn times considerably at one of the essential junctures in the mortgage underwriting process, which is a cause for concern.

Why the Property Appraisal Process is Sluggish

Did you know that the slow pace of property appraisals can kill real estate deals and give a massive benefit to cash buyers over borrowers in the US housing market?

Also, it is worth noting that the appraisal process is slow in some US markets and during specific times, mainly because of capacity and quality issues with appraisers. Keep in mind that mortgage origination volume in the country is highly variable, while an appraiser’s capacity is rather fixed. This difference can lead to unpredictable and unstable earning potential for property appraisers; as well as volatility in turn times and costs for both lenders and borrowers. 

Here are some other issues that can delay the appraisal process.

Unique Property 

It may not be hard or time-consuming to find comparable properties for cookie-cutter neighborhoods.  On the other hand, the more different or unique a home is from an average property, the harder it is for a real estate appraiser to locate suitable comps. You may know that most clients want their appraisals back in seven calendar days, and this is usually manageable.  However, keep in mind that when a client’s property is out-of-the-ordinary, it is better to have more time. 

At times, on inspection, the property appraiser will determine the property is considerably more challenging, and that often warrants a need for those involved to renegotiate the due date. In these cases, it can take much longer to find comparable properties or ways to effectively formulate a value without sufficient comparable data.

Increased Scrutiny and Requests for Information from Underwriters

Due to the inclusion of new rules in the Dodd-Frank Wall Street Reform and Consumer Protection Act, most underwriters are requesting more information than in the past. Although the purpose of Dodd-Frank was to reduce risk in specific areas of the US financial system, note that it also adds many additional complications, which can slow down the process. With the implementation of new rules, underwriters can also ask for more photographs and additional details, which lead to longer waiting times for final appraisals as well as loan approvals. 

Juggling Work

Note that appraisers are likely juggling several different property appraisals at a given time. This simply means that they don’t work on all appraisal projects every day. If a real estate appraiser just had one property to appraise, then it would be simpler to finish the appraisal much earlier.

The Real Estate Settlement Procedures Act (RESPA)

 You may know that this is a set of regulations that helps provide more transparency to homebuyers in the US. These regulations came about because a lot of buyers were signing loan contracts with terms and conditions that they were not aware of, like floating rates and points. Additional regulations can retard the process.

Shortage of Property Appraisers

There is no doubt that appraisal reports are now being scrutinized more than ever before. And this mainly stems from increased property regulations implemented after the 2008 housing crisis and from more demands set forth by property investors who purchase loans from various lenders in the secondary market. Note that this can make it more challenging for individuals to enter the field. This is why there’s a shortage of property appraisers, which further exacerbates the issue.

How AmeriMac can Expedite the Appraisal Process

Communication 

At AmeriMac, we understand and appreciate that client trust depends on open communication. Since the AMC’s founding in 2014, we have operated on the important guiding principle to offer personalized, one-on-one service for and timely communication with our lenders. As one of our core values, commitment means we will always answer the phone, addressing any questions and concerns you have. 

A dedicated and reliable AMC, like AmeriMac, will understand the lender’s unique needs and requirements while working with an expert appraiser in the field. This point of contact is focused on your account and also knows what is in the pipeline to easily maintain continuity in an ever-changing and dynamic industry.

Compliance and Quality Control

AmeriMac is also registered in all 50 states and we operate in compliance with both state and federal regulations and guidelines. You know that disputes can seriously hamper many expectations when it comes to appraisal turnaround time. Keep in mind that the key to lowering turnaround time is working with a partner, like AmeriMac, that has a quality control process designed to identify mistakes before submission and hence limit costly delays.

We improve appraisal quality by giving our appraisers and review staff the tools, data, and workflows required to identify and address any issues before a property appraisal is submitted. 

Coverage and Capacity 

Did you know that AmeriMac has a network of highly-qualified appraisers across the US? We carefully select our appraiser panel for their geographical knowledge and expertise required for each appraisal order. We also make great effort to ensure that our appraiser panel has the capacity and experience to complete your property appraisal on-time.

Final Thoughts

It’s no surprise that the government’s introduction of regulations to distance borrowers and lenders from the property appraisal process has increased the wait times for completed appraisals. This situation is also compounded by the fact that considerably more real estate transactions are now taking place in the market. However, you can expedite and streamline the process by working with AmeriMac, whose appraiser panel and quality control team are ready to complete your appraisals accurately and on-time.