First, outsourcing reduces costs. Costs for an internal department with an appraisal expert to oversee it (as required by the Appraiser Independence Requirements) can be higher than you’d think. In addition to salaries, there are payroll taxes, benefits, rent, equipment, utilities, insurance and more. And don’t forget the time, effort and expense of reconciling invoices and paying appraisers. Outsourcing to an AMC costs lenders nothing and allows them to get rid of significant overhead costs.

Second, outsourcing lowers hassles and distractions. Appraisals, by definition, are not a mortgage lender’s area of expertise. They’re a distraction from your core competency and a hassle to manage. Allowing experts to take the burden off your hands leaves your team free to focus on bringing in and closing more loans.

Third, outsourcing appraisals to an AMC lowers risk to the lender. Dodd Frank and AIR are clear: “An employee of the Seller in the sales or Mortgage production function shall have no involvement in the operations of the appraisal function.” Lender requirements to manage appraisals internally are lengthy, detailed and demanding, and we’ve found that very few lenders are compliant. And no, using appraisal management software is not enough. The vast majority of lenders managing appraisals internally are at risk of failing an audit.

Fourth, lenders can continue to maintain control, get quality appraisals done quickly, and use the same trusted appraisers through an AMC. We know that many AMCs have poor turn times and even worse customer service. But Triserv is an exception. Our client-specific teams on both coasts get to know the lenders they work with. Their high-touch, personalized order follow-up means every appraisal’s milestones are managed to strict timelines and lenders always know when each order is accepted, scheduled, inspected and delivered.