Residential Investor Services modeled on the relay race
Residential investors, anxious to prep properties and get them rented or turned over, are under heavy pressure to close loans as fast as possible.
The challenge is that these transactions don’t fit into a neat little processing box. They aren’t really commercial loans but they aren’t typical residential loans either. There could be one or two properties involved, or thousands. The parameters for title, appraisal, underwriting and insurance are inconsistent from one investor/funding source to another. When you factor in the complexities associated with properties often acquired through auctions or tax sales, you add more time, not less, to the transaction.
A surefooted approach to a new service delivery model
Operational leaders from Incenter’s title and settlement, appraisal management and insurance, services divisions brainstormed a new service delivery model based on the relay race. Tight coordination among the runners, practiced handoffs where no one fumbles the baton, and a need to beat the clock are the big success drivers.
The new model began to take shape as key title, appraisal and insurance milestones and dependencies were placed along an expedited timeline with the ambitious goal of getting loans cleared to close within two weeks.
Core to the model’s success is to keep transactions moving forward quickly while allowing for the process to flex with the vast number of variables that change with each loan and lender. Clear, continuous communication among all parties, the ability to shape discrete process components around individual appraisal, title and insurance requirements, and a segmented residential investor services team coordinating closely with third-party partners (such as a tax title sales specialty firm) are all equally critical to shortening the timeline without compromising the integrity of the transaction.
Trending with the markets
The residential investor market is booming thanks to several current trends including a shortage of single-family inventory that is driving up fix and flips, tax sales and large developments. Both large- and small-scale initiatives are attracting the attention of capital markets and investors and spurring additional, unprecedented growth that’s expected to continue through 2021. Our Residential Investor Services are already playing a crucial role by helping investors and other transaction parties take full advantage of the surge in this burgeoning market.