For the third and final part of VMG’s three part blog on better understanding appraisal management services and appraisal compliance, we will discuss outsourcing of the appraisal management process and the benefits.
Part III –
A financial institution can self manage the valuation process, but does that focus on the strengths of the financial institution’s team in areas where they are experts? Outsourcing the appraisal management process and/or appraisal reviews ultimately ensures appraisal compliance, improves efficiency and reduces expense for the institution. The cost of an appraisal department can be sizeable and is absorbed by the institution. Many financial institutions realize managing the appraisal process and appraisal reviews is not in their wheelhouse and utilize a competent appraisal management company. The savings to the institution can be sizeable if an appraisal management company is utilized to manage the process and the total appraisal fee incorporates the appraisal management company’s fee, as the fee becomes a pass through cost to the borrower.
Financial institutions who proactively engage third parties to manage their valuation function stay ahead of the game with respect to appraisal compliance, but also reduce expense and increase the institution’s efficiencies. The upside to engaging a competent and well managed appraisal management company includes high levels of appraisal compliance, more consistent valuation services, quality control functions, experts in valuation services supporting the institution and their appraiser panel, and expense reduction. It is in the institution’s best interest to conduct proper due diligence on any third party to ensure they are financially stable and a suitable partner for the institution.
Vicky Thompson is the President and CEO of Valuation Management Group, a national commercial and residential appraisal management and appraisal review company. Thompson founded VMG in 2006. She is a certified residential appraiser and has been appraising since 1994. Valuation Management Group is headquartered in Metro Atlanta and has an office in Birmingham, Alabama. Call Vicky Thompson, 770 380 0799 or Patrick McMillen, COO, 770 380 3849 for information about VMG or questions about appraisal compliance.
Valuation Management Group is a national appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary. VMG welcomes your call to discuss our national appraisal management services.