The need for speed: accelerating real estate and AI’s role in mortgage processing

IN Partnership with

PCV Murcor executives on streamlining operations in the mortgage appraisal industry

STREAMLINING THE mortgage application process is a key challenge for lenders and homebuyers alike. AI can expedite this process through automation. The home loan industry is increasingly turning to artificial intelligence to expedite the mortgage approval process, aiming to shrink wait times from a month or more to a more manageable week or two. This swift turnaround not only accelerates the flow of capital for banks and investors but also diminishes the dependence on expensive human labor. In a detailed conversation on the future of real estate appraisals, executives from PCV Murcor, a leading real estate valuations management company with over 40 years of experience, shared their insights on the integration of AI into the appraisal process. PCV Murcor has been a cornerstone in the industry, catering to a wide range of valuation needs for mortgage lending, financial institutions, estate and litigation, real estate investors, and mortgage servicers.

Licensed in all 50 states, plus D.C., PCV Murcor provides nationwide appraisal management and valuation advisory services for residential and commercial real estate. An industry leader with over 40 years of experience managing valuation needs for mortgage lenders and servicers, financial institutions, investors, federal agencies, and the GSEs. Our mission is to help clients and their customers make their real estate needs happen through accountability, connectivity, and performance. Our use of state-of-the-art AI technology ensures precision and efficiency in every aspect of our service. Experience innovation-powered precision and time-tested excellence with unparalleled service and cutting-edge products.

Find out more

“AI significantly enhances scalability in our processes, allowing us to engage experts who can make informed decisions based on the data”

David Schiffmayer, PCV Murcor

Marc Tatarcuk, vice president of national sales at PCV Murcor, is enthusiastic about the advancement in appraisal technologies, saying, “The anticipation of how AI, OCR, and other emerging technologies will revolutionize the industry in the coming years is an exciting opportunity for us. The industry has been ripe for this change for a long time.” AI’s ability to enhance efficiency, accuracy, and flexibility is reshaping the way properties are evaluated with distinct advantages. By automating data extraction, improving document management, and accelerating the appraisal process, results are being delivered at the forefront of innovation and excellence.

David Schiffmayer, an experienced appraiser and SVP of operations at PCV Murcor, says, “I got brought onto PCV Murcor to work on modernization and special products. My role involves managing teams and providing them with insights from the lender’s perspective, offering guidance on what lenders may be seeking.”

These technologies can efficiently handle extensive data analysis to identify red flags far more effectively than manual processes performed by staff. “AI significantly enhances scalability in our processes, allowing us to engage experts who can make informed decisions based on the data,” Schiffmayer says, “This is crucial, as we can focus on employing a team of experts to address complex issues, which is a substantial benefit.” PCV Murcor is employing AI to scan appraisals for keywords, subjective language, and similar elements using OCR technology. Additionally, image recognition technology helps appraisers spot potential issues like structural damage or external influences, streamlining the review process. Another driving factor is upcoming major changes by government-sponsored enterprises (GSEs) transitioning from traditional forms to a new report format that is more compatible with AI technologies. Manually processing such extensive reports would be impractical. By adapting to these changes, PCV is preparing for a future that demands scalable processes and modernization, especially given the current market logjam.

“We are not just integrating technology for the sake of it; it’s about comprehending how and why the technology fits into our operations. If this understanding isn’t clear internally, it becomes challenging to communicate the rationale and benefits to appraisers and lenders”

Marc Tatarcuk, PCV Murcor

AI isn’t merely an omnipotent tool that operates independently. It requires continuous refinement of rules, diligent data oversight, and adjustments to ensure algorithms remain effective. For example, when something is missed in the quality control process, we need to understand why and update rules to maintain accuracy. As Schiffmayer says, “You have to have smart people who work with this kind of data looking constantly at what AI is doing to make sure you stay calibrated. Long-term, the issue is it’s just going to be too expensive to go with the traditional model of housing an army of people to review a report with a medium level of accuracy.” Margins are thinning, Schiffmayer finds, making it increasingly challenging to maintain such a model. Instead, having a high-powered, focused team that expertly manages the data is a more efficient approach than using a large, less-specialized workforce.

He says, “Our average tenure for independent appraisers on our national panel is about 15 years, which surpasses the operational history of many of our competitors. What truly sets us apart is our commitment to maintaining strong customer relationships. While we have automated many aspects of our operations, we prioritize personal, manual communication with our clients to ensure they are always informed and satisfied. “This approach addresses one of the industry’s major pain points – poor communication – which many have unsuccessfully tried to modernize. We believe in the personal touch, recognizing that there is a homeowner at the end of each property transaction who deserves the utmost care and attention as we, ourselves, would expect.”

AI’s role in enhancing appraisal processes

The human element: maintaining quality and customer relations

AI’s role in enhancing appraisal processes

OCR in action: achieving scalability

Published JUNE 17, 2024

Resources

News

Specialty

Best in Mortgage

Mortgage Industry

While AI has been developing over the years, the mortgage loan industry is now seeing the benefits of appraisal modernization. Presently, Tatarcuk details, “There are several ways AI will

OCR in action: achieving scalability

“It’s essential to understand the impending changes and ensure that our solutions are appropriately tailored,” Tatarcuk concludes. “We are not just integrating technology for the sake of it; it’s about comprehending how and why the technology fits into our operations. If this understanding isn’t clear internally, it becomes challenging to communicate the rationale and benefits to appraisers and lenders effectively. “While we may not always be the first to market with innovations, we strive to be at the forefront in terms of quality and relevance. Our approach is about ensuring a deep, comprehensive understanding of the technologies we adopt. Only then do we feel confident in extending these solutions to the wider market.”

A necessary step forward

PCV has dedicated considerable effort to enhancing customer relationships and maintaining a blend of automation and manual processes in its operations. While certain areas benefit from automation, communication remains largely manual, emphasizing the importance of clear and personal interactions with clients. This approach addresses a common industry complaint about how overly modernized communication often fails to meet client needs effectively. PCV Murcor holds a firm belief in the significance of the homeowner at the end of each transaction, ensuring that every order receives the careful attention it deserves.

Newsletter

About us

Authors

Conditions of Use

Terms & Conditions

Sitemap

RSS

More than 1,000 automated business and client-specific rules in QC with AI-assisted review by staff appraisers

Innovation-powered precision, time-tested excellence

Nationwide panel of independent appraisers’ average tenure is 14+ years

Live support from 5 am to 5 pm PST

Each client given a direct number to their account manager

Integrated directly into over 250 client systems

Through PCV Murcor’s AskQC service, our on-staff appraisers troubleshoot appraisal issues in real time

“Additionally, it addresses many lenders’ concerns post-loan completion by eliminating numerous issues, thus supporting the front end. In scenarios involving purchases and buybacks, meticulously dotting the I's and crossing the T’s early on helps prevent many errors that could occur later. A cleaner appraisal from the start ensures a smoother process for all parties involved, including appraisers, who benefit from identifying potential issues early. Furthermore, when we deliver the appraisal to the lender, they can be assured it has undergone an extensive additional review.” Such reviews include examining pictures and scrutinizing the wording used, identifying potential fair lending issues, and other potential issues within the report. Remarkably, it accomplishes all this in seconds, a task that would typically take a significant amount of time for an individual to perform to the same depth. From this standpoint, AI systems effectively accelerate the entire process into a higher gear. Schiffmayer adds that AI technologies like image recognition and OCR are instrumental in identifying issues such as property damage or compliance risks efficiently. “These tools allow us to focus our expert staff on high-level analysis and decision-making, rather than on time-consuming manual reviews,” he stated.

enhance compliance throughout the process. It offers opportunities to reduce turnaround times by minimizing revisions and improves the consistency and efficiency for loan officers from the outset.”

OCR in action: achieving scalability

A necessary to move forward

News

MORTGAGE INDUSTRY

BEST IN MORTGAGE

SPECIALTY

resources

Newsletter

About us

Authors

Conditions of Use

Terms & Conditions

Sitemap

RSS

The human element: maintaining quality and customer relations

A necessary to step forward

News

MORTGAGE INDUSTRY

BEST IN MORTGAGE

SPECIALTY

resources

Newsletter

About us

Authors

Conditions of Use

Terms & Conditions

Sitemap

RSS