The borrower experience and building out the digital mortgage are a must. Lenders like Assurance Financial know how crucial it is to move the loan process into the digital age. Directional change is important, but measuring your actual ROI will show what you’ve gained in relation to the cost of the investment, whether it’s savings in money, time, or both.
Core areas where lenders can measure ROI
There are two core areas lenders should focus on to measure ROI: appraiser performance and operational performance. Start by calculating how much appraisal is costing you today, and then review the numbers regularly post-implementation. You may choose to measure ROI monthly, quarterly, every six months or annually—the cadence will likely change the further you are past the implementation period and whether there are specific goals you are continuing to optimize for.
Review these lists of metrics to understand what can be measured in each focus area.
Metrics to gauge appraiser performance within appraisal management tech
○ Average appraisal turn time
○ Average appraisal cost
○ Revision rate (What percent of appraisals require revisions?)
○ What percent of appraisals are delivered on time?
○ Turn time breakdown:
- Average days to accept (How long on average, does it take you to find an appraiser?)
- Average days to schedule
- Average days to complete inspection
- Average days to the first submission
- Average days to last submission
Metrics to gauge operational performance within appraisal management tech
○ Current monthly appraisal order volume
○ How many full-time employees (FTEs) are directly responsible for appraisals operationally?
○ What percentage of a processor’s time is spent on finding an appraiser to complete the order or reallocating the order to a more eligible appraiser versus managing exceptions during the appraisal process?
○ What are the main categories of exceptions/issues that processors must deal with during the course of the appraisal order that ultimately slow down the appraisal in general?
○ How many FTEs are there relative to order volume?
○ What percent of your operations team’s time is spent:
- Following up
- Correcting or editing
How lenders can start driving ROI in their appraisal process
Many lenders can do a little legwork to determine their current business costs in regards to the above. A trustworthy technology vendor can help you review these costs and point to specific savings you would gain by making simple changes to workflows and systems. Lenders should expect that a technology partner show how it can drive down costs, such as how the Reggora platform is shown to reduce operational costs by $258 per loan file.
There are many other steps that a lender can take to get the most out of an appraisal management tech solution, highlighted in the appraisal management tech buyer’s guide for mortgage lenders.
Fighting margin compression? Reggora improves margins for lenders by $286 per loan file. Request a demo to see the platform in action.
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