We're very grateful to the nearly 1,500 appraisers who filled out our online survey about lender-side adoption of electronic appraisal ordering, follow-up and report delivery.  The results show that appraisers are ready and able to do business as efficiently as your clients may demand.

We asked you about your capability to accept electronic orders, take and respond to follow-up or status requests electronically, and deliver electronic reports (through Mercury, through your XSite, with a plain old PDF e-mail attachment, or whatever) five years ago and today.  The numbers were fairly consistent in all three categories.

• Are you capable of accepting electronic orders?
  More than 50 percent were capable in 1999. More than 97 percent are today.
• Are you set up to handle follow-up/status requests electronically?
  Just about 50 percent were capable in 1999. Ninety five percent are today.
• Can you produce and deliver PDFs or other electronic format reports?
  Forty five percent could in 1999. More than 97 percent can today.

As to whether your clients are on board, that was a different story. We didn't ask anyone to estimate their total volume of business, so we can't use the survey results to extrapolate and tell what percentage of overall appraisal business is conducted electronically today. But we did ask you to estimate the volume of your orders, follow-ups and reports that take advantage of today's technology.

• Half of you said that 35 percent of your orders or fewer come in electronically — Mercury, WinTOTAL, e-mail or other electronic method — today.

• Four of every ten of you who said you were capable of receiving orders electronically, said that 80 percent or more of your orders are still coming in via phone and fax.

"The local banks have not yet modernized to e-mail," Opie G. Boyer, of Opie G. Boyer, Jr. Appraisal Service in Huntington, Pa., said. "Maybe we should charge $50 more for paper appraisals," he suggested.  "The banks have got to catch up."  (We asked and received permission to quote Mr. Boyer.)

Half the appraisers who completed the survey reported that three quarters or more of their clients' follow-up "calls” are just that — phone calls or faxes, rather than electronic — Mercury's daily status summary, real-time status management, e-mail or other electronic communication.

Even in light of these results, unsurprisingly, electronic reports have caught on. 

• Half of you said that 95 percent or more of your reports today are delivered electronically — through our Mercury servers, via e-mail attachment or otherwise. 
• But 12 percent of those of you who said you were able to produce electronic reports said that half or more of your appraisals are still going out as hard copies!

It's obvious from the survey results that not every lender client — it may not even be a majority! — is on board with electronic ordering.  We'd like to do something about it, with the Mercury Network and our new Mortgage XSites, because it's good for our and your business. Something as simple as being able to import property and assignment information directly into the formfilling software of your choice rather than typing it from a fax saves considerable time and aggravation, and lets more appraisals get done in the same amount of time.  That's simply more productivity for not as much work.

What we hoped to make clear with the survey is that when lenders complain (and they do!) that appraisals don't happen fast enough, they're cursing the darkness when they could, at least to an extent, be lighting a candle.  We hope what the lender community takes away from the survey is that its complaints about turn times (and their appraisers) would have greater credibility if they were doing as much on their end as you are to do business efficiently.

Property Solutions Network, Inc., which was doing business as AI Direct Connection, is winding down operations as a result of a change in business plan, officials for Real Estate Appraisal Services, Inc. (REAS) and the Appraisal Institute told AI Direct Connection appraisers. The book of business built through AI Direct Connection is being picked up by REAS, a wholly owned appraisal and appraisal management subsidiary of Charter One Financial Corporation.

Property Solutions Network, Inc. was originally formed by Charter One and AI Holdings, Inc. as a way to funnel business to Appraisal Institute members.  "REAS has managed the process flow for AI Direct Connection since the company's inception, is committed to maintaining the high standards established for this business, and will carry on the AI Direct Connection commitment as the business is transitioned to REAS," Megan Harbath, vice president, regional manager for REAS and John Ross, executive vice president of the Appraisal Institute, said.

"The Appraisal Institute supports REAS in carrying on this business and encourages you to work with REAS on any assignments that may be referred to you," the notice said.

A couple weeks ago we asked you if you did business with consumers/homeowners/borrowers directly, and if so how you did it. "The way I started was by becoming acquainted with attorneys, accountants, and other professionals who deal with these issues," wrote Bob E. from Sullivan, Ill.  "A large portion of my business comes from this source. It does take some time to develop the contacts, but the business is there."

Steven D. from parts unknown develops his relationships with brokers. "Oftentimes we can seem to be white knights riding in at the nick of time to the appraisal that will save the loan, the deal and the broker's commission.  But most of all it is an opportunity to offer personalized service and advice that often is not available when dealing directly with banks.  I personally have saved a couple deals and have nixed a few and saved the borrower thousands simply by working with the broker and informing them what will appraise and what will not," he wrote. "Coupled with short turn times, 48 hours max in my case, the broker and lender come to realize the appraiser as an asset and not a hindrance."

And in relation to a previous challenge, Susan G., also from parts unknown, wrote to ask that we pass along a good resource for coaxing payment out of foot-dragging clients.  "Let appraisers know that there is a website that lists all agencies that regulate the mortgage industry and they can print it and then put that agency for the appropriate state as their next contact if invoice remains unpaid.  The site is: http://www.regulatorycounsel.com/bankingcommission.htm. Works like a charm (most of the time)," she said.