Stewart In The Studio E03 - Appraisal Modernization and Diversity for Improved Quality and Turn-times
Jun 13, 2024
Unlock the secrets to modernizing real estate appraisals and fostering diversity in our fascinating conversation with Terry and Rick from Stewart Valuation Intelligence. Discover how bifurcating the appraisal process allows appraisers to focus on what they do best—valuation analysis—leading to faster turn times and reduced risks in loan making. We also highlight Stewart's active role in the Appraisal Diversity Initiative, a program designed to bring new, diverse talent into the appraisal industry. From workshops to scholarships, learn how Stewart is shaping the future by creating a more inclusive and innovative field.
But that's not all! Get the inside scoop on Stewart's cutting-edge products and solutions that cater to various market needs. From broker price opinions (BPOs) and desktop appraisals to an integrated market data platform, Stewart offers a range of tools to streamline processes and improve accuracy for appraisers, brokers, and agents. Whether you’re interested in short sales, foreclosures, or home equity appraisals, this episode sheds light on the tools and initiatives that are revolutionizing real estate valuation today. Tune in and get ahead of the curve with the latest advancements from Stewart Valuation Intelligence.
Unlock the secrets to modernizing real estate appraisals and fostering diversity in our fascinating conversation with Terry and Rick from Stewart Valuation Intelligence. Discover how bifurcating the appraisal process allows appraisers to focus on what they do best—valuation analysis—leading to faster turn times and reduced risks in loan making. We also highlight Stewart's active role in the Appraisal Diversity Initiative, a program designed to bring new, diverse talent into the appraisal industry. From workshops to scholarships, learn how Stewart is shaping the future by creating a more inclusive and innovative field.
But that's not all! Get the inside scoop on Stewart's cutting-edge products and solutions that cater to various market needs. From broker price opinions (BPOs) and desktop appraisals to an integrated market data platform, Stewart offers a range of tools to streamline processes and improve accuracy for appraisers, brokers, and agents. Whether you’re interested in short sales, foreclosures, or home equity appraisals, this episode sheds light on the tools and initiatives that are revolutionizing real estate valuation today. Tune in and get ahead of the curve with the latest advancements from Stewart Valuation Intelligence.
Speaker 1:
Did you know that appraisal modernization and appraiser diversity can improve turn times and quality for faster closings? Stay tuned to learn how Stewart Valuation Intelligence is leading the industry while offering everything from BPOs to full appraisals.
Speaker 2:
From the Stewart headquarters in Houston, texas, usa. It's Stewart in the studio.
Speaker 1:
We're live in 3, 2, 1.
Speaker 2:
And we're on the air Today. We have Terry and Rick from Steward Valuation Intelligence with us. I guess one of the areas that maybe not all of us are as familiar with is appraisal modernization. Obviously it's been in the headlines, but for those of us who are new to the topic, can you give some background on appraisal modernization and why that's become a hot topic?
Speaker 3:
Appraisal modernization is taking it in a different way. By allowing the bifurcation of the process, where the data is collected and it's all brought together for the appraiser to be the analyst, gives them the opportunity to do things faster. They're not on the road, they're not taking photos, and it gives them the opportunity to do things faster. They're not on the road, they're not taking photos, and it gives them the ability to concentrate on what is the biggest risk that we're looking at. It's the valuation portion. It gives them an opportunity to spend that needed time to really analyze and bring things to the forefront that we haven't been able to in the past. Appraisal modernization is just really taking all of the data that we've collected for so long and now putting that into a process that's a modern process that meets today's demands and to reduce the risk in loan making.
Speaker 2:
Appraisal diversity. Can you talk a little bit about that and how that comes into play at Stewart?
Speaker 1:
Yeah, absolutely so. Stewart Valuation Intelligence SVI. We are a proud sponsor of the Appraisal Diversity Initiative. So now that's a collaboration between Fannie Mae, freddie Mac, the Appraisal Institute and the National Urban League. So it was founded back in 2018 with the goal to bring awareness of the real estate appraisal profession to attention, to entrance. So SBI recognized the importance of being a part of this important initiative. So we are our workshop sponsor and the mission is to reach, educate diverse, talented candidates, offer that peer mentorship for career development and provide trainees job placement assistance from sponsoring organizations job placement assistance from sponsoring organizations. So we had a live event this year. We had over 120 attendees right in the heart of downtown Tempe, arizona, in the JPMorgan Chase building. As they co-sponsored this event with us, svi awarded 10 scholarships and the scholarship recipients they varied in background levels, their interests. All of that will add that diversity no-transcript.
Speaker 2:
Let's talk about the range of products and solutions that you offer.
Speaker 1:
Yeah, I'll start. I'll start on the lower end and work our way up. So we offer broker price opinions, which are BPOs. We have a national network of real estate brokers and agents. Inception started back in the 90s, so you could call us sort of pioneers. Really, our platform is proprietary, it's rules-based engine, so we'll address all errors or omissions right in real time, right as the agent and broker enter the data, resulting in faster turn times, less re-words, improved one-touch quality, which is extremely important and then also providing that client satisfaction.
Speaker 1:
Bpls are typically utilized in the capital markets and service arenas short sales, foreclosures, portfolio asset valuation and private mortgage insurance BMI. And then, on that same proprietary platform, we offer desktop appraisals. So that's a limited scope appraisal that's completed by a state credentialed appraiser. So we typically will see faster turn times when we have the broker agent complete the field inspection and then we provide the data to the appraiser and the appraiser does what they do best, which is the analysis. So that product is mostly utilized in the home equity space.
Speaker 1:
I also want to tell you about our platform, which is supported by integrated market data, imd, which integrates the MLS and public record data just directly right into our platform, so it's providing the data at the fingertips of the appraiser, the broker, the agent with more accuracy and then, of course, those timely submissions. We also have appraisal risk reviews, evaluation reconsideration products. We have a whole suite of products. An appraisal risk review and evaluation reconciliation is completed by a credential appraiser that's located in the state of the subject property and that includes a written analysis that's addressing any red flags or, if the opinion, market value is considered reasonable. So these are typically utilized to confirm the appraiser's methodologies opinions conclusions understand the risk and then also to satisfy compliance issues. So ARRs are mostly utilized in the pre-funding of due diligence based on investor requirements.
Speaker 3:
There's quite a range of products and traditionally most of that has been just appraisals a full appraisal on the property or a drive-by appraisal on the property. I want to bring up appraisal modernization because with that we're starting to add some new products into the mix. The first thing we've got is the property data report for Fannie and Freddie. This is where Fannie and Freddie historically have given waivers for appraisal waivers for several different types of loans, and they're still doing that. But to limit the risk, they want to know what the property is like today, what the condition is, and that's where we come in and we fill this void for the property data report.
Speaker 3:
Fannie and Freddie have gotten together and they've gotten all these data points that they want to collect about the physical attributes of the property, and this is where we send these inspectors out to the property.
Speaker 3:
They collect the information. We're 100% integrated with Fannie and Freddie and the information flows back to them Makes it very seamless for the lenders that they can use in conjunction with these waivers now. So that's one of the new things that we've offered. We've been doing it for about a year now and with that coming is going to be the hybrid appraisal, which is taking that information that our data collectors have collected and now giving it to an appraiser, giving it to a human who knows the market, who understands to put a valuation together using that information. I'm super excited about this new innovation because I think it's going to be really good for the industry. It removes a level of bias that could be there. The appraiser is not interacting with the homeowner, the realtor, they're not meeting anybody at the property and they're doing what they do best. That's value the property and that's what appraisers do best.
Speaker 2:
Terry, can you talk about some of the opportunities that you see for SVI to better serve customers in some of these segments and niches in 2024?
Speaker 1:
better serve customers in some of these segments and niches in 2024? Yeah, certainly. What we do see a lot is our ADI product, which is the desktop version on our proprietary platform. So that certainly gives the appraiser quicker, faster turn times because the agent broker is going out doing that inspection and then of course, the appraiser is doing the analysis part of it. So certainly you could still get the expertise and, of course, the appraised value from an appraiser, but it does reduce the whole cycle down a lot quicker.
Speaker 2:
Terry on the staff appraiser initiative. Can you talk a little bit more about what that looks like here at Stewart?
Speaker 1:
Yeah, so that's also another exciting thing. So we just recently launched the new staff appraiser program, so we're building a network of employee field appraisers right in key markets. This will benefit huge with quicker turn times, improve that one touch quality, which is really big. Faster contact scheduling with the borrower. This is very positive because it creates that good customer and lender experience. The other thing too is it does have a multi-tiered value. So the performance improvement and then also the program's long-term goal is to assist in bringing real estate appraisal roles to diverse team members is an important role. So it goes hand in hand with the appraisal diversity initiative. So it's exciting. It's exciting to see that it's going to grow this coming year.
Speaker 2:
Okay, good, Rick. Any final thoughts on the appraisal side?
Speaker 3:
Yeah, absolutely A couple of things that you know with SBI and where we're positioned in the market. You had mentioned some initiatives in 2024. We're expecting some market headwinds and some contraction in the valuation space With the appraisal modernization and the technology needed. There's a lot of AMCs out there that aren't going to be positioned to be able to fill that void. We can cascade from everything from a BPO to an ABM to a complete full appraisal. We can even do narrative appraisals if necessary, and that's a product suite that not very many other people are able to offer. So we are truly the one-stop shop or a lender that comes in that needs to be able to service a many different lines. Thank you.
