Reminder: The “broker channel” is one where loan officers do not work for a specific mortgage bank but instead submit their loans to multiple “wholesale lenders” who underwrite and fund loans on behalf of the brokers/loan officers. JVM is now in the “mortgage banking” channel where we originate, underwrite and fund loans all under one roof.
Despite our success in the broker channel, we were forced to exit it for one reason only: Poor Appraisal Quality.
All of the wholesale lenders forced us to use large Appraisal Management Companies or AMCs. The appraisals provided by these AMCs were often of very poor quality, unnecessarily killing our transactions time and again.
The appraisals had quality issues for several reasons: (1) the AMCs paid their appraisers very poorly b/c they kept a large portion of the appraisal fee, removing incentives for the appraisers to do their best work; (2) the AMCs were often national or regional, and they stocked their appraiser pools with any appraisers they could find without vetting skill; and (3) the AMCs did not make sure their appraisers were local and knowledgeable with respect to neighborhoods (an absolute necessity in hot markets).
At JVM, our appraisal panel is 100% hand-picked, fully vetted and local. In addition, they keep almost all of the appraisal fee. Our appraisal quality is now the best in the industry – again, an absolute necessity in hot markets :).
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167
