It’s a conversation that’s a bit overdue, so let’s talk about the tech changes that are making an impact on the appraisal industry. How and when can we make the appraisal process more efficient and a better experience for clients? TSI Appraisal’s Associate Corporate Counsel Andy Goldberg had the opportunity to answer these questions and gain the ear of relevant stakeholders during his panel presentation at the Mortgage Bankers Association (MBA) Risk Management, QA & Fraud Prevention Forum held in Miami in late September.
Andy spoke on a panel presentation titled “Managing the Appraisal Process” with two other appraisal industry representatives. The presentation title was broad for a reason; panel speakers encouraged an organic, relevant and timely discussion lead by their audience of lenders, AMCs and professional appraisers. Andy spoke alongside Chase Home Lending Executive Director Carla Nott, and Clarocity Valuation Services Chief Appraiser William Waltenbaugh.
The panel discussion focused mainly on technology in the appraisal world, including automated valuation models (AVMs). As this technology becomes more widely used, appraisers question where they stand in the process, but it’s obvious that a human element will always be needed. That’s because appraisers know their neighborhoods and the trends that are happening within them, and quite simply, not much can replace that expertise. “We focused a lot on AVMs during our discussion. They’re great because they offer a regression analysis, but they’re not so great in that they cannot always adjust for market trends,” said Goldberg. “AVMs are only as good as the data that’s put into them. It’s why we’ll always need the educated and experienced appraisal professionals.” AVMs will still help make some things more consistent. Consistency brought to the appraisal industry due to an AVM is greeted with open arms, whether for regulatory compliance issues, state licensing requirements, report requirements from lenders, or appraisal availability. But, again, as AVMs continue to be used, they’re still only as good as the data within them.
Technology is developing and it is important to understand how it can help. “But, there’s yet another challenge with appraisal tech today, and that’s getting everyone on board,” said Goldberg. The role of the appraiser is changing, and technology is a part of that, but the expertise and analysis of the individual will always be relevant.
“Before speaking at the MBA forum, I sought out TSI Appraisal experts to ask where they think change should happen, and where it could happen,” said Goldberg. “It’s through these communications that we’ll be able to identify new opportunities and meet the nationwide client demand for an appraisal with a quicker turn time. If you have the right stakeholders in the room who can effect change, then you have their ear, and eventually change will happen. That’s what I aim to be a part of,” added Goldberg.
Interested in helping TSI Appraisal grow the next generation of appraisers? Let your partner manager know!