National appraisal management company PCV Murcor is using artificial intelligence (AI) technology to catch red flags in appraisal reports, according to an article in the Mortgage Professional America.

The company, founded in 1981, “has a long-standing track record in the industry of providing valuation products and services,” according to David Schiffmayer, senior vice president of operations.

“We offer a full suite of products that can be customized to meet our clients’ needs,” he added.

The company acts as a middleman between lenders and independent appraisers.

“We assign orders from the lenders to an independent panel of nationwide appraisers,” Schiffmayer said. “They serve as a type of ‘firewall’ between the sales force at the lender and the appraiser in the field, so that we can ensure a homebuyer is getting an independent valuation.”

The company also performs an array of compliance functions for lenders, as well as broker products and proprietary products. They take client guidelines and underwriting requirements utilizing technology to create a scannable process to ensure compliant routines are followed.

“But we’re not so tech-heavy that we lose the personal touch when it comes to actually communicating with the client,” Schiffmayer said.

The company executive described the appraisal form as the “densest in the industry.” With a robust rules engine, PCV uses AI to look for various combinations to identify red flags. That makes the company’s review time much faster internally, according to Schiffmayer, in addition to removing the potential for headaches down the road – ensuring that a “well-supported opinion of value” goes out.

Keith Murray, PCV founder, president and CEO, likes to remind employees that while lenders are their clients, they should be mindful that there’s a family at the end of this transaction, who’s making one of the largest decisions of their life – buying a home.

“We always try to keep that mentality at the forefront of our thoughts,” Murray said.

Since the start of the pandemic, house prices have surged dramatically, and Schiffmayer agrees that market conditions are an important driver of valuation – but so too is location.

“It is important to know what the comparables are,” he said. “Appraisers don’t always have that context of the lifecycle of a loan throughout the industry. We can help them understand that it’s not that they have done anything wrong, but that a more detailed explanation is needed due to those factors. Really, our job is to partner with appraisers.”

The company also takes into consideration what the appraiser is looking for, Murray said, so the report is as well-supported as possible when delivered, protecting both the lender and appraiser from risk. An appraisal can take many forms, from the traditional appraisal, the primary product across the industry, to evaluations. There are even “desktop appraisals” and “hybrid appraisals” available too, though the ultimate end goal is always to ensure that an informed purchase decision can be made.

Schiffmayer gives a lot of credit to Murray, whom he calls “a very hands-on owner,” for leading the company through these challenges. Murray started in the industry as an appraiser himself back in the early 1980s.

“He works with all levels of the organization on a personal level. Quality is his hallmark,” Schiffmayer said. “A lot of our routines, especially around quality and risk and industry practices, are just part of who we are and our DNA. We take our role in the process very seriously, and our job is to provide high-quality products while mitigating risk.”