4 Quick tips for managing your appraiser panel

 

The million dollar question when it comes to appraisal management is should you have an appraisal panel internally or hire an AMC? Okay, so it might not be a million dollar question per se, but it’s a question worth considering. Without the right tools and resources, managing an appraiser panel can be complicated and tedious. Beyond the management of appraisers themselves, you might be left dealing with unreliable software or headache-ridden paperwork. However, there are ways to manage your appraisal panel stress-free. Pull up a chair and lend us your ear as we divulge a few secrets to appraisal panel management success.

KEEP YOUR APPRAISAL PANEL PAPERWORK IN TIP-TOP SHAPE.

One of the difficulties managing an appraiser panel internally is staying up-to-date and even ahead of the curve on appraiser licenses, W-9s, and insurance policies. If you’ve taken the internal management path, it’s imperative that you keep an eye on all of the necessary licensing and paperwork. Regularly check your internal list against the one found on the ASC. There, you’ll find the Appraisal Subcommittee’s disciplinary action list. The list will provide you with appraisers who are no longer in good standing due to lapses in licensing or other disciplinary issues. Manage your panel’s paperwork and processes well, so you can see which appraisers you can rely on, and which ones need improvement, or even removal.

CONSIDER IMPLEMENTING A PROCUREMENT GROUP.

In an ideal world, a bank managing appraisers internally would have its own procurement group filled with licensed and certified appraisers that understand the appraisal order process, how to bid, and assign properly. This would ensure that the best appraisers get the most assignments. Additionally, it would allow the procurement panel to then use any reporting and scoring during the review process to fine-tune procedures. At MountainSeed, we have full-time staff appraisers who are in charge of the front end of appraisal orders. They look at every order that comes across their desk and then bid or assign it to the best appraiser. There is no time like the present to better your systems, and a procurement panel might be the efficiency boost you’ve been looking for.

FIND YOUR LUCKY NUMBER OF APPRAISERS ON YOUR TEAM.

Another key component to consider is which service levels are appropriate for your institution. One way to do this is to use our Benchmark report to get up close and personal with your state’s trends in commercial appraisals. Once you’ve established a service level, you’ll be able to determine whether your appraiser supply matches your appraisal demand. If you have fewer appraisers on your panel than demand, chances are you will be overworking your appraisers and your turn times will suffer. If you have too many appraisers on your panel, appraisers might not get a significant amount of work from you to keep their attention.

• Pro Tip: One of the benefits of using top appraisal management companies like MountainSeed is that we send our appraisal work to our nationwide network of appraisers. Even our smallest clients have the ability to order an appraisal in a remote area they aren’t used to working in because they have a team of appraisers on their side.

UNDERSTAND REGULATIONS AND COMPLIANCE. IT AFFECTS EVERYTHING.

It goes without saying that our industry is driven by compliance, and it’s important to understand all of the rules and regulations that can affect the day to day grind. In fact, we’d even argue that understanding compliance is a full-time job itself. Knowing that appraisers should not complete their own reviews, or understanding appraisal independence requirements can help keep you out of hot water with your regulators. One of the most important things to be aware of is the separation of loan production staff from the appraisal process. Another part is understanding that evaluations and reviews should both be segregated entities. You can manage this internally with an internal credit department that reports directly to someone who is not on the loan committee, or you can use an external third party. Either way, knowing who reports to who and keeping those lines from crossing is imperative to appraiser panel management.

If you think you might be ready to discuss managing your appraiser panel with an appraisal management company, we’re all ears. Contact us to get the conversation going, or subscribe to our monthly newsletter for even more quick tips on appraisal management.