Tips for Better Communication between Lenders & AMCs
The appraisal process completed quicker and compliantly when all overseeing parties are on the same page. The experts at Oxford share best practices for financial lenders and AMCs
As more and more appraisers continue to enter the industry of commercial real estate, there’s no doubt that banks and financial lenders can really benefit working with a trusted Appraisal Management Company (AMC) such as Oxford. Even if the AMC does not have a specific, affiliated brokerage, both parties will want to rest assured knowing that they’re working with a trusted partner on a given project.
Why?
Successful relationships with AMCs are vitally important to the lender in terms of compliance management and growth within their own real estate market. In evaluating potential AMC partnered-appraisals, lenders should consider whether the AMC:
- Has a sizable panel of approved appraisers
- Oxford has a strong team, with at least a dozen appraisers holding the prestigious MAI designation
- Has a history of communicating well with the specific bank or lender
- Offers high quality appraisal reports
- Oxford ensures a timely appraisal process with 100 percent compliance
- Has a reliable compliance department
- Our experienced team will deliver a reviewed, certified, and 100 percent-compliant project while working together and in communication with your staff
- Evaluates all reports from the lender’s point of view
- We work with you Provides consistent appraisal turnaround times
Additionally, and as a resource for both AMCs and lenders, AMC’s should be operating under the following best practices to ensure the most effective Lender-AMC communications:
Keep everyone in the know
Communication is key! The AMC should be sure to alert the lender of any potential problems and delays as soon as an order for an appraisal is placed. Delays that threaten a rate lock can be expensive, and it’s better for all parties involved to have a realistic estimate of the time for appraisal delivery very early on in the process.
The AMC should also provide a realistic deadline to the lender so it can alert its real estate partners and borrowers that the appraisal could affect the closing date. No one wants a delay, but more importantly, no one can afford an unforeseen delay.
The AMC should be able to properly communicate with the bank/lender staff as well as the broker staff (owners, processors, etc.). Above all else, the number one concern is keeping everyone fully compliant.
Have a reliable system
A big factor in the AMC-lender relationship depends on the AMC having a proper system(s) in place to handle the assignment, orders, and delivery of reports. A successful AMC will have a tried and trusted method in place to ensure a beneficial process and relationship.
At Oxford, our online portal is highly secure and available 24/7 to qualified parties via login credentials. We monitor the appraiser throughout the process and the qualified parties receive automated email updates notifying them of progress each step of the way. When completed, we will review and certify the appraisal for 100 percent compliance.
We repeat: Communication is key
The AMC should provide its bank/lending partner with a firm estimate on cost and delivery right from the get-go. Appraisal fees can increase for a number of reasons, including:
- Too few comparable properties in the area
- Excessive driving distance
- Rush fees
- Rural, complex, or difficult state-specific issues
It is the AMC’s duty to provide this information quickly so that all parties are aware and the lender maintains control of the transaction in the eyes of its important referral partners.
Find an institution that clicks with you
Every lender is different… therefore, it’s important for an AMC to team up with a financial institution that that has configurable processes to its own.
Questions to consider on both ends (for this one, we worded it in the eyes of the lender):
- Does the AMC focus on a specific financial demographic or are they flexible from one lender to another?
- How many different financial types does the AMC work with?
- Are they allwholesalers?
- Do they have a good variety of credit unions, direct lenders, and regional banks?
- What kinds of technology are available that would benefit your company?
- What are the hours of operation for the AMC?
- How will you get in touch with them at a moment’s notice?
At Oxford AMC, we understand that every lender we work with is set up completely different – from the small to the large. We cater to each of our partner’s need with the utmost care and concern to ensure that everyone is happy and that the appraisal process goes as smoothly as possible.
As a lender, staying in constant communication with an agent is only truly possible when your chosen AMC provides up-to-date, accurate information. After all, things tend to go a lot more smoothly when everyone is one the same page.
Oxford’s highly-skilled and experienced appraisers perform every technical review. Areas of expertise include:
- Multi-Family (All Types)
- Hospitality (Hotels)
- Office
- Residential Subdivisions
- Retail
- Self-Storage Facilities
- Industrial
- Banquet Facilities
- Low & Moderate-Income Housing
- Many other Special-Use Properties
The firm has worked with both lenders and regulators to offer unmatched third-party appraisal management expertise to financial institutions. Want to learn more? Get in touch with the AMC experts at Oxford today!