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FNF Appraisals AIC Conference May 2009. Innovative Lender Solutions. AMC’S ROLE & OBJECTIVES. Role - Contract Management & Pipeline Management (process) backed by Technology Objectives Maximize Efficiencies TAT’s, Quality Minimize Costs. VALUE ADD – ENHANCING APPRAISER SERVICES.
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FNF Appraisals AIC Conference May 2009 Innovative Lender Solutions
AMC’S ROLE & OBJECTIVES • Role - • Contract Management & Pipeline Management (process) backed by Technology • Objectives • Maximize Efficiencies • TAT’s, Quality • Minimize Costs
VALUE ADD – ENHANCING APPRAISER SERVICES • FNF manages appraiser pipeline, monitor work in progress and adjust daily order assignments to maximize appraiser performance • Provide pre-delivery quality control – “another set of eyes” before delivery to client • Offer dispute resolution – mediate market value and client disputes, keeping appraiser and client at arm’s length • We invest heavily in electronic interfaces (portals) assuring smooth work flows and delivery confirmation. Minimizing appraiser capital investment. • Financial Management – we prepay appraisal fees before lender payment taking responsibility for collections
VALUE ADD – ENHANCING APPRAISER SERVICES • FNF does not compete directly with local appraisers – no in-house network of appraisers • Provide access to local and national clients not otherwise available to an appraiser • Provide expanded client base & stable income
WORKING MORE COLLABORATIVELY ? Independent Appraisers FNF • AIC – Annual Advisory Council – sharing/consultations • AIC – Educational sessions – ie. Evaluation of Appraisal Contracts • Re-Fees? Open dialogue between AMC’s, appraisers, AIC, lenders about the value of the appraisal and AMC’s management • Increased education and understanding of AMC’s • Initiate an emphasis on Undue Appraiser Influence
FACT or MYTH? • Appraisers working with AMC’s are “non-accredited”, inexperienced, incompetent form fillers? • AMC’s force appraisers to work “for such-and-such” fee? • Is it realistic to conclude that “you get what you pay for” when it comes to AMC appraisals? (low price = poor quality)
FACTS • 63% of residential appraisers work with AMC’s (over past 5 yrs- ** U.S Stats. – ) • majority of appraisers who do not work with AMC’s would do so if they were to earn higher fees – (confirming it’s all about the money-** U.S. Stats.) • All appraisers must be licensed where necessary and accredited members of Assoc. requiring levels of education and competency. • In FNF’s case, all reports are vetted through a quality control process ensuring quality levels meet expectations and create a level playing field. ** U.S. Stats – October Research Corporation National Appraisal Survey (Volume 2- 2007)
MYTHS - • Is it realistic to conclude that those appraisers working with AMC’s are “non-accredited”, inexperienced, incompetent appraisers? • MYTH: this generalization fails when you consider, all appraisers have accreditation and licensing where required. Majority of residential appraisers work with AMC’s or have within past 5yrs.(U.S. stat extrapolation) – Are the majority inexperienced etc?… I think not. • Is the argument that AMC’s force appraisers to work “for such-and-such” fee -? • MYTH: comment is a mischaracterization – AMC’s and appraisers nail down an agreement re-work product, service levels and the fee. • If they can’t agree on a fee, any service engagement ceases. Appraisers therefore willfully enter these business arrangements.
MYTHS - • Is it realistic to conclude that “you get what you pay for” when it comes to AMC appraisals? (low price = poor quality) • MYTH: comment is unfounded. Have you ever done a job in which the work completed was more difficult than the fee paid for the work justified? I think most would say yes. • So why then didn’t you slough it off, turn in a lousy product? • Because as a professional you wouldn’t do it. -- I don’t believe an appraiser would routinely produce better or inferior work depending on fee. • Further, AMC’s routinely check report quality against content rules and Association accreditation expectations (balancing the playing field)
Summary • Recognition that there are a number of myths regarding AMC’s and the relationship with appraisers. • Imperative to educate and understand roles, the obligations and responsibilities to make informed business decisions. • General consensus that Appraisers and AMC’s are worth more to their clients than the fees being paid. However, a focused and united approach is necessary ……….. • Open Collaborative Dialogue between appraisers, AMC’s, lenders, AIC and related associations about the “Value/Pricing” equation is a starting point.