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How to Reduce Costs While Protecting Quality

How to Reduce Costs While Protecting Quality

It’s no secret that loan production costs are among the highest our industry has ever seen. But with a more modest purchase market on the horizon, rising costs have become particularly stressful to bear. Of course, the primary driver of high loan costs is the length of time it takes to close a mortgage loan. And because it is one of the most time-intensive components of the mortgage process, the appraisal is a major factor in controlling costs. Appraisal problems have been known to delay closings and occasionally derail deals altogether, adding greater costs that lenders cannot afford. At the same time, diminishing home values, new appraisal exception rules and in some cases, a shortage of appraisers in certain markets are creating problems of their own. Collectively, these factors can and have been known to have an adverse impact on appraisal quality. With all of these things going on, how on earth can lenders improve valuation quality while reducing costs next year? Rest assured, it can be done. Here’s how....

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