More Efficient Valuation Management & Review
Feb 07, 2013
Featuring Cindy Ginter, Director of Product Management
Monthly Podcast Transcript - Duration: 7 minutes
Adrienne Ainbinder, Moderator: Welcome to the Veros Real Estate Solutions monthly podcast. Today, Cindy Ginter, Director of Product Management for Veros is here to talk with us about making the process behind valuation management, from ordering to review, and ultimately submission, more efficient, and of course, everyone’s favorite buzz word: compliant. Cindy, thanks for joining me today. And what can you tell me about how the landscape has changed for the lenders?
Cindy Ginter: Well, thank you for having me today. Today’s lenders are more cautious and competitive that ever. While regulatory compliance is a must, lenders are also scrutinizing and developing more rigorous internal methods and processes that reduce their exposure to risk and basically protect their bottom line. So they’re also looking to preserve their integrity and confidence in the secondary marketplace. There are still drains, though, on FTE’s and other resources, and they’re increasing regulations. All the while you have the GSEs and other entities enabling themselves with the capacity to really drill the data.So if you’re a lender still doing these things manually, not only are you behind, but you’re at risk by not being able to see what others, like the GSEs and your regulators can see in the valuations that support your lending decisions.
Adrienne Ainbinder: So let’s say I’m a lender starting from scratch in all of this: meaning that I still do everything manually. What’s your advice on where I should start?
Cindy Ginter: Well, the leap into the 21st century is not as painful as some would imagine. First you need to do an honest assessment of what is working and what’s not working within your organization. Now you do have – do you have disjointed processes? Are you continually trying to obtain status, and manually trying to assess risk on every file? Do you submit to UCDP as a completely separate step? Understanding how electronic your data really is and which areas cause you the most pain or cost the most to support are actually very critical. And don’t forget any delays caused by manual processes translate directly into lost revenue, and may also impact your competitive edge.
Adrienne Ainbinder: Absolutely. That’s great advice. You certainly need to understand where you are at the beginning before you can light up the appropriate path to move forward. That makes perfect sense. Okay, so let’s say I’ve got my bearings on my current situation. Tell me a bit about the tools that are out there, and what should I be looking for?
Cindy Ginter: So well, there are ordering systems, appraisal panel management applications, AMC integrations, valuation review platforms, appraisal fulfillment systems, compliance applications, along with UCDP direct integrator services that submit your appraisals to UCDP, and of course reporting platforms. Now these can be provided separate by different providers, or as in the case of Sapphire, several or all of these processes can be rolled into a seamless, integrated workflow. By doing so, Sapphire keeps the valuation data at your fingertips and one centralized solution. You can place a single order. You can place batch orders of up to 15,000 orders at one time. That sounds like a lot, but the system can actually handle that.
Adrienne Ainbinder: Wow.
Cindy Ginter: The system will identify duplicate orders that may have been previously ordered, providing the user with the opportunity to cancel or continue with the current order. And what a cost saver that has been. It’s also provides the lender the opportunity to reduce risk through robust quality control rules that can reject the report for correction before it even comes into your pipeline. And with Veros Integrated Preview Service, lenders can also address any anticipated issues with UCDP. By allowing the lender to control their own risk tolerance, they create their own specific routing rules, additional QC rules and valuation review checks. They not only save time, but also may be able to reduce their operating costs.
Adrienne Ainbinder: Wow. That’s quite the list.
Cindy Ginter: It is quite the list, I know. But Sapphire also provides the ability to communicate on the order with the associated users right there within Sapphire. And I think that’s a big advantage. And because Sapphire’s also modular, it can be configured to include all of these capabilities for a lender, or only those areas that they really need: ordering, panel management review, and or UCDP submission. And extensive ad hoc reporting is in one platform that can be readily integrated with the lenders own LOS, servicing, or any other operational actually.
Adrienne Ainbinder: Wow. So I know a lot of people have a lot of concern about this quote, un-quote black box and really knowing what’s happening. So with Sapphire, how do I really know what’s going on with my orders?
Cindy Ginter: Well, with every order – I mean, I’m sorry. Every order has a history. And when that order is fulfilled and reviewed, access that history can be critical. So Sapphire provides and entire audit trail of that order life cycle and the events surrounding that order: who did what and when, and even sometimes why, such as why did that report get rejected in the first place. So Sapphire also provides up to date status of the order at every juncture throughout the lifecycle of that order in a really user-friendly interface.
Adrienne Ainbinder: Now you touched on this when you talked about audit trails, and before I go I really want to make sure we touch on the issue of compliance. So what’s your advice to lenders, or really anyone looking to automate their valuation strategy, on how to make sure their system is going to set them up appropriately and maximize their compliance?
Cindy Ginter: Well, you said that buzz word again: compliance. Again, it all comes back to implementing policies and rules that support your decision-making. The Sapphire QC rules, developed by appraisers with the ability for the client to insert their own appropriate must clear hurdles, basically. They also can implement their own review rules where a client can determine if the appraisal needs manual review or not, and what constitutes a complete review. So the ability to view and prove that audit trail of an order, and ultimately the UCDP submission response is all at your fingertips, and all contributes to a compliant valuation process that can be proven.
Adrienne Ainbinder: Wow. Well, thanks Cindy. I know we could probably go on and on on this topic, especially when it comes to compliance. But I think that gives our listeners a great overview to get them started. So thanks again for your time and your expertise.
Cindy Ginter: Great. Thank you.
Adrienne Ainbinder: For our listener, additional information on Sapphire can be found at Veros.com. Or if you’re looking for some additional insight on automating your valuation strategy, you can reach out directly at Info@Veros.com. Thanks for listening.