How Lenders Win as a Result of Positive Relationships Between AMCs and Appraisers

Helping Lenders Be More Efficient, Cost Effective and Compliant with Home Valuations
AMCs play an essential risk management role as a firewall in the mortgage origination process. They act as a buffer between independent appraisers and loan officers and others who could otherwise unduly influence the valuation process. This is why a number of federal and state laws mandate the use of AMCs.

Relationships, Relationships, Relationships
Everyone knows the location, location, location rule of real estate, but when it comes to AMCs, relationships rule. AMCs that have long-term, positive relationships with appraisers are able to deliver more benefits to lenders. At CSS, we take our relationships with our appraisers seriously, investing in building long-term, mutually beneficial partnerships. We do this in several ways including by:

• Ensuring appraisers are able to set their own fees—an approach that is obviously more attractive than having an AMC dictate what an appraiser can charge. At CSS, we respect our appraisers’ right to establish their own fee structure, and rather than take a percentage of their fee, we simply add a flat service fee across the board.
• Providing expert staff resources with a personal approach. Our appraisal experts have an average of 10 years of industry experience which gives them nuanced understanding of local markets as well as valuable insights regarding legal and regulatory requirements and industry trends. We further leverage our staff expertise with a personalized approach to communications that ensures highly productive working relationships.
• Offering technology-based solutions that otherwise would be cost prohibitive for appraisers to develop. The mortgage industry has been hyper focused over the last several years—as well it should—on developing and implementing technology, including AI and machine learning, to improve efficiencies, streamline operations, and reduce the cost of originating a mortgage or home equity loan. CSS is tapping into the benefits of technology so that the appraisers we work with are, in turn, able to use these cutting-edge tools to benefit the lenders they work with.
• Acting as an advocate for appraisers when assignment conditions prevent them from completing an appraisal. As an independent mediary, we’re able to tackle hurdles—including with direct access to our management team—to bring about consensus with the appraiser on how an appraisal can be completed.  
• Delivering industry expertise. Because of their scale and dedicated staff, AMCs are more equipped to stay ahead of industry trends, regulatory changes and other important updates, such as technological advances, that appraisers typically don’t have the time or expertise to stay on top of. At CSS, we provide regular communications on these industry matters so that the appraisers we work with can be knowledgeable experts without having to commit their own staff time on the required research.
• Providing important reminder notifications when license and/or E&O insurance certificates are due to expire. Having another entity act as a secondary quality assurance resource gives appraisers peace of mind that these important requirements don’t lapse.

In addition to improving output, these and other ways in which we strengthen our relationships with appraisers improves their willingness and ability to be more responsive to requests for status updates, rush orders, revisions and other exceptions. Unforeseen challenges and exceptions are inevitable with real estate transactions, and revision requests are a significant part of the appraisal process—revisions rates can range from 20-40% depending on the lender. Because of our efficient and symbiotic relationships with our appraisers, CSS is able to maintain revision rates well below 5% with very little involvement required by the lender.

This approach is also why CSS is so successful with the panel management model in which we take over management of a lender’s full appraiser network, further improving the efficiency, quality and compliance of valuations. As a result, lenders can maintain their historic appraiser relationships while significantly lowering their internal workload. CSS is able to provide customized appraisal services with specific geographic competency. We work with our lender partners to customize their panel of appraisers by county, property type, priority and percent of orders, factoring in the quality control factors that meet their goals.

Strong relationships between AMCs and appraisers provide significant advantages to lenders, enhancing efficiency, compliance and appraisal quality. By fostering mutual respect, offering advanced technology and providing expert support, AMCs like CSS empower appraisers to be successful so that lenders win.