As rates continue to rise and lenders adjust to markedly tighter profit margins, the hunt is on for opportunities to improve operational costs. In light of that, HousingWire Content Solutions Managing Editor Maleesa Smith sits down with Sara Kodikara, Sr. Professional of Product Management at CoreLogic, to discuss a key area where lenders could improve their bottom line.
“One of the key and often overlooked areas where we see lenders losing money is surprisingly in their accounting processes, specifically in the ways that they track collect, reconcile and distributed appraisal fees,” Kodikara said. “Why is this so important right now? Well, in today’s market, where lender margins are tighter than they have been in years, every dollar matters. Improving accounting workflow efficiencies can have a significant impact and help lenders maintain and grow their bottom line.”
Kodikara explained that one of the biggest challenges facing many lenders today is that they’re still using manual accounting processes when it comes to appraisals.
“Unfortunately, when appraisal fee increases or discrepancies occur, they’re typically forced to absorb those losses,” she said. “Nobody likes that. So in short, manual accounting makes reconciliation in these instances difficult and the resulting losses that go straight to the lenders’ bottom line.”
Kodikara highlighted how CoreLogic’s accounting automation solution help solve for those challenges and reduce the costs associated with invoice processing and accounts payable overhead. The solution helps eliminate common pain points like having to combine fees prior to paying vendors, reconciling complex appraiser, AMC and lender fees, not being able to easily refund the borrower when needed, she said.
“At the end of the day, driving workflow efficiencies for lenders is in CoreLogic’s DNA,” Kodikara concluded. “It’s what we do better than anyone else out there, and our clients have been blown away by the efficiencies that the accounting automation solution has delivered.”
To learn more about CoreLogic’s automated accounting solution, click here.