Natalie Bowman, vice president, ServiceLink valuation, explains how ServiceLink’s tech-enabled valuation QC process addresses lenders’ top priorities and concerns as they originate loans for new construction and other purchases

The only constant in the mortgage industry is change and ServiceLink’s ongoing investments into tech-enabled mortgage solutions helps lenders adapt according to their priorities, regulatory requirements, industry changes and seasonal trends. As lenders embark on purchase season, data-assisted valuation quality control (QC) helps ensure that property valuations for new construction and existing homes are accurate, well-supported and unbiased. ServiceLink’s process and its team of experts accelerate historically manual review processes to combat concerns from the GSEs and lenders while driving efficiencies and increasing report quality. The solution is constantly evolving to keep pace with changing regulations and market trends.

“Lenders can combine ServiceLink’s real-time appraisal scheduling capabilities, which can shave days off the application-to-close timeline, with our advanced, lender-focused review solution to leverage even greater efficiencies,” says Natalie Bowman, vice president, ServiceLink valuation. “We layer onto the latest technology with dynamic controls that enable us to tailor and continually refine our process based on each lender’s unique underwriting needs.”

Below, Bowman answers questions about how ServiceLink is improving valuation reviews to better serve lenders as well as borrowers.  

What makes ServiceLink’s valuation review for mortgage lenders a great fit for new construction and purchase loans?

Our QC process improves appraisal report quality while decreasing valuation turn times. Using cutting-edge character recognition, natural language processing (NLP), image recognition and exhibit analysis, our process addresses potential issues that could impact value. Our solution enables the reviewer to focus on value-impacting items while limiting subjectivity. It helps lenders understand any variances in the appraised value and the home price. Additionally, we leverage customized processes specifically focused on new construction requirements when applicable. In fact, we have a team specifically qualified and trained to review new construction elements. They’re educated on GSE requirements specific to new builds.

Character recognition and natural language processing (NLP)

The advanced character recognition and NLP integrated into ServiceLink’s upload process work together to detect potential bias and value-impacting issues. The NLP considers the context of specific words and phrases, then clearly flags any text-related issues — errors and subjective terminology — that need to be resolved by ServiceLink’s internal team. In addition, it helps recognize comments within the report that speak to any concerning items in the purchase contract – for example, amenities designated as real property rather than real estate.

Image recognition and exhibit analysis

Contextual validation of photos and other images is also critical to the accuracy and objectivity of the appraisal report. ServiceLink’s technology examines all images and exhibits, identifies and reports inconsistencies, and detects external factors that could impact the appraised value. It helps assess the overall condition of the property and any damage that could impact value. Additionally, our technology can determine if photos supporting the valuation are missing or contain items that could bias the valuation, like religious symbols or family portraits. In the case of new construction, photo recognition can help ensure the project is truly complete – identifying issues like uncovered outlets, missing handrails, etc.

Our solution also examines location maps and other exhibits to ensure that the data, as well as the images, within them are consistent with what’s in the report. Additionally, ServiceLink has adopted the utilization of third-party data sources to systematically detect external factors that may affect the valuation and confirm they’ve been appropriately addressed within the report. For example, it identifies errors and omissions for subject and comparable sales data.

How does ServiceLink’s unique solution benefit lenders?

Our lender-focused QC solution improves valuation quality, which can enable the lender to eliminate or substantially reduce the amount of time collateral underwriters need to spend on review functions. Another key benefit is that these dynamic controls allow for specific configurations mirroring the lender’s underwriting process. For example, ServiceLink can adjust the sensitivity for photo rules, taking into account that some lenders may be more concerned about what they see in the back of the house whereas others may be more concerned about interior photos or external factors.

Our solution is constantly evolving – taking the pressure of innovation and keeping pace with changing regulations off our clients. For example, we’re currently making the appropriate updates to our solutions in advance of the GSE’s redesigned Uniform Residential Appraisal Report (URAR) and UAD 3.6 implementation. Ultimately, it both increases efficiencies for the lender and enhances the borrower experience, as reductions in time spent on valuation reviews can contribute to getting customers or members to the closing table faster.

Can you describe the team that developed ServiceLink’s solution and that uses it every day?

The knowledge and experience of our valuation QC team is unmatched. Our senior leaders have more than two decades of QC experience, and the average tenure within our QC team is 15 years. We have been through many years of industry changes, and we know how to drive successful implementations as we help ensure our lender partners comply with evolving GSE guidelines and meet borrower demands.

The role of our QC team has also evolved, as our focus has shifted to a deeper analysis of material items within the report. All appraisals are reviewed by a designated, specialized team.

Our team works closely with lenders, too, to ensure we are incorporating their rulesets and mirroring their underwriting processes. Through client calls, on-site visits and other outreach efforts, we explain how our data-driven mortgage quality control process works and discuss how we can tailor it to help them achieve their end goals. Then we keep in touch to make sure their valuation review processes continue to align with their evolving needs.

Learn more about ServiceLink’s valuation solutions.

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