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Centract Settlement Services

Centract Settlement Services. 2009 Appraisal Institute of Canada “Doing Business With AMC’s”. The History OF VMC Industry. When did the concept of vendor management services start in the United States? 1950’s (Legal Messenger Service 1959) 1960’s 1970’s 1980’s

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Centract Settlement Services

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  1. Centract Settlement Services 2009 Appraisal Institute of Canada “Doing Business With AMC’s”

  2. The History OF VMC Industry • When did the concept of vendor management services start in the United States? • 1950’s • (Legal Messenger Service 1959) • 1960’s • 1970’s • 1980’s • (LSI - Lender Services Inc. Regional Services – NSC;– National Service Center)

  3. Role & Objective of An AMC Role To take various aspects of the loan origination and risk assessment process that are not core to the Financial Institution, and have them delivered by an outsourced service provider. Objective To align with the Lender’s desire to create an exceptional customer experience and to add value by providing time sensitive, quality services and products, while reducing costs. (Faster/Better/Cheaper)

  4. The AMC Overall Value Proposition Maintain sales forces, websites, marketing departments, client relationship staff Obtain business through RFP’s Consistent reporting, quality assurance over multiple jurisdictions Manage pipeline of work, balance work in progress Hire and train professional operations and QC personal Mediate market value disputes Pre Delivery Quality control Invest in electronic interfaces and portals for clients and suppliers Responsible for accounts receivable and payable Act as a buffer between the lender and the appraiser Often the first adopters of new client products Provide warranties in the form of additional insurance for the lender Provide employment opportunities Reduce lender costs for non core activities

  5. CSS Value Added Services Buffer from Client Pressure Additional Quality Controls Access to National or Regional Clients Stable Income Removal or Reduction of Bad Debts Best Business Practices Manual Report Cards, (Performance and Process Flaws) Performance Bonuses Educational Seminars – Industry Trends, Client Specific Requirements, Fraud Mitigation Conferences Free Desktop Software Later This Year

  6. What AMC’s Might Do For Lenders Providing the intended user with a recommendation for a qualified appraiser based upon geographic location. Obtains bids for appraisal assignment – agent’s client chooses the appraiser. Obtaining bids and awarding contracts – but appraisal is delivered directly to the intended user. Obtaining bids and awarding contracts, reviewing appraisals and forwarding the appraisal report to the intended user. Obtaining bids, awarding contracts, reviewing appraisals, requiring changes to the appraisal and forwards the appraisal to the intended user. Obtaining bids, awarding contract, reviewing appraisals, requiring changes to the appraisal, summarizes (or otherwise alters the original appraisal) and forwards the summary or altered appraisal to the intended user. Source; Illinois Real Estate Appraisal Board

  7. Five Factors Underlying AMC Growth The mortgage lending industry is consolidating Competition, productivity and other economic factors are exerting downward price pressure on virtually every mortgage settlement service Lenders continue to look for alternative products and services to further drive down the costs associated with mortgage loans Technology is breaking down the barriers to inter provincial and internet based mortgage lending Transactional transparency among trading partners, codification and automation of routine processes, and advanced scalable technology, reduces overall operational, strategic, reporting and compliance risks associated with third party outsourcing.

  8. AIC and AMC Collaboration The AIC needs re consider its messaging to Financial Institutions who deal with AMC’s. Challenging them regarding their business decisions does not foster collaboration The OEAQ needs to consider if profiling appraisers who work for AMC’s is a new form of collaboration The AIC needs to be responsive to AMC’s and other Industry Stakeholders when they bring new product ideas forward that might mean evolutionary business opportunities for appraisers AIC Feb 20, 2009 communiqué indicated regular meetings being held with AMC’s, and Lenders, regarding contracts, undue influence, and professional matters. No recent meetings with Centract on any of these issues

  9. Areas of Co-Operation Respecting Each Others Role AMC’s Acting As Placement Agencies For Employment Advisory Council – Future Trends/Products Emerging Market Education Co Ordinated Market Messaging - ie. Appraiser Independence (HVCC)

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