The hunt is on for ways to reduce operating expenses as rates increase further and lenders adapt to noticeably slimmer profit margins. In a recent Interview with Sara Kodikara, a Senior Professional of Product Management at CoreLogic, she highlighted that one of the major and frequently ignored areas where lenders are observed to be losing money is in their accounting procedures, particularly in the manner that they monitor collect, reconcile, and disburse appraisal fees. Every dollar counts in the current market when lender margins are the tightest they have ever been. As a result, enhancing the effectiveness of the accounting workflow can significantly affect lenders’ ability to sustain and expand their bottom line.
According to Kodikara, one of the main issues facing many lenders today is that they continue to use manual accounting procedures for appraisals. Unfortunately, she said that lenders are frequently required to absorb losses when appraisal fee increases or disparities occur. In conclusion, manual accounting makes reconciliation challenging in many situations, and losses directly affect lenders’ bottom lines.
Kodikara emphasized how CoreLogic’s accounting automation technology helped address these issues and lower the price of overhead for accounts payable and invoice processing. According to her, the solution aids in removing joint pain points, such as the necessity to combine fees before paying suppliers, the requirement to reconcile intricate appraiser, AMC, and lender fees, and the inability to repay the borrower when necessary quickly. Driving workflow efficiencies should be a top priority for lenders as markets experience tighter margins, and accounting automation solution has proven to deliver these efficiencies. To read more, click here.
https://www.housingwire.com/articles/a-key-area-where-lenders-can-improve-the-bottom-line/
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