Accelerating appraisals has become increasingly important as lenders strive to increase margins and improve efficiency in every step of the origination process.
The potential impact of modernizing the appraisal process has grown more apparent in recent years, and the adoption of digitally enabled appraisal techniques has increased, along with appraisal and inspection waivers, and collateral analytics. Banks have numerous opportunities to improve and modernize their appraisal process and provide a better consumer experience. ServiceLink’s annual State of Homebuying Report shows data that aligns with this. The research highlights trends among homebuyers and the housing market and offers insights on how consumers make refinancing, home equity, and homebuying decisions based on the feedback of 1,000 individuals who purchased a home or tried purchasing a home within the past 3 years.
Implement digital mortgage strategies that streamline appraisal workflows.
One of the most-compelling opportunities to make appraisals more efficient is at the very onset of the process: scheduling the appointment. Scheduling can be complicated by the number of parties involved in an on-site inspection, including a lender, appraiser, AMC, borrower, and real estate agent. Today, most of consumers schedule their appointments over the phone. This process is inefficient, especially for large lenders and their service providers, and lacks the consistency of digital alternatives.
Lenders that offer digital appraisal scheduling capabilities provide a more predictable and consistent service experience, and reduce the back-and-forth required to coordinate schedules among appraisers, borrowers, real estate agents and home sellers. Given younger consumers’ tendency to eschew phone calls in favor of digital interactions, it’s essential that the industry embraces multiple channels to communicate, so borrowers can interact with lenders and AMCs on their own terms.
The data from the State of Homebuying Report shows that technology plays a large role in the mortgage process as it is convenient and easy to use, saves time, provides flexibility and transparency, and saves money. 53% of individuals surveyed applied for a mortgage online, 48% eSigned application or closing documents, 25% conducted appraisal remotely via virtual platform, and another 25% scheduled appraisal or closing digitally. There’s a huge opportunity to increase the percentage of those scheduling digitally to keep pace with the other steps of the origination process.
Increase transparency in the appraisal process.
Even after an appointment is scheduled, consumers typically receive limited details about the appraiser, what to expect during the appointment and how the appraisal factors into the overall mortgage process. Providing borrowers with more information about the appraisal appointment bolsters their confidence; information gaps can contribute to a less-satisfying experience. Lenders can mimic the experience of ride-sharing apps by implementing instant scheduling technology that provides consumers with their appraiser’s name, phone number, photo, and make and model of their vehicle.
Attract millennials.
Even though the housing marketing has been challenging, millennials are still open to making moves and consider buying a home, tapping into home equity, and embracing technology. Millennials are the most likely of any generation to tap into their equity with 49% saying they plan to take out a home equity loan.
They also continue to embrace technology at a higher volume than previous generations: 60% applied for a mortgage online, 50% eSigned documents, and 31% closed remotely via virtual platform. The majority see the benefits of using technology in the mortgage process as it offers convenience and ease of use, time savings, flexibility to make progress on own schedule, transparency, and cost savings. Implementing digital appraisal scheduling helps meet millennials where they are: online.
Implement processes and technology that support innovative approaches to property inspections and valuations.
The GSEs’ support of appraisal modernization is opening new opportunities for lenders to save time, labor, and money while creating exceptional consumer experiences. Navigating those opportunities, as well as their related challenges, takes a strong collaboration between lender and technology partner and could have the ultimate result of a more efficient borrower experience.
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