Appraisal management

Collateral appraisal is the methodology used by lenders to measure the value (the fair market value of the collateral) of collateral linked to their lending activities.

Commercial borrowers may pledge real estate property, investments, and other assets as loan collateral. A formal collateral appraisal is performed as part of the loan origination process to determine the value of the collateral.

In Q2 Origination, an appraisal administrator can raise an appraisal management request to determine the value of the pledged collateral (usually a real estate type collateral) by an appraiser (third party). After an appraisal request is created, an email is sent to each appraiser associated with the collateral requesting bids and the appraisal fee they are going to charge for appraising the collateral. To know the email template that is sent to the appraisers, see Q2 Origination Administration Guide > Appraisal Management, and to understand how the email is sent using the notification framework, see Q2 Origination Administration Guide > Appraisal Email Notification Framework.

The appraiser responds with the appraisal fee and the due date by which they can submit the appraisal report.

The appraisal administrator reviews all the bids received from multiple appraisers, selects an appraiser (based on the due date and appraisal fee) or sets up Q2 Origination to auto-select a bid. When an appraisal bid is accepted, other bids are automatically moved to Rejected status by the system. If no action is taken on an appraisal request till the due date, manually update the status of the bids related to that request to Expired, and then resubmit the appraisal request.

After a bid is accepted, an email is sent to the associated appraiser to submit the appraisal report. To know the email template that is sent to the appraiser, see Q2 Origination Administration Guide > Appraisal Management, and to understand how the email is sent using the notification framework, see Q2 Origination Administration Guide > Appraisal Email Notification Framework.

The associated appraiser submits the appraisal report. Note: You can also send reminder emails to the appraiser to submit the collateral appraisal report. To know the email template that is sent to the appraiser, see Q2 Origination Administration Guide > Appraisal Management, and to understand how the email is sent using the notification framework, see Q2 Origination Administration Guide > Appraisal Email Notification Framework.

Once the report is submitted, the appraisal administrator reviews it, approves it, and then uploads it to the system. This triggers the Collateral Valuation record to be created for the appraisal request, and the system updates the collateral value of the appraised collateral.

The following image depicts the various steps performed as part of collateral appraisal management:

Prerequisites

Before you proceed to raise a collateral appraisal request, ensure that the following prerequisites are met:

Collateral Type of Real Estate is set up.

To know how to set up Collateral Type, see Q2Origination Administration Guide > Collateral Type Setup.
The appraisal administration setup is completed. To know how to set up appraisal administration, see Q2 Origination Administration Guide > Appraisal Administration Setup.
At least one account is set up as an appraiser with the email address specified and is associated with a collateral category.

An org-wide email address is configured to be considered as the from address to send emails.

To create an org-wide email address:

Log in to your Salesforce account.
Go to > Setup, and in the Quick Find box, search for Organization-Wide Addresses, and then select it.

On the Organization-Wide Email Addresses page, select Add and then specify the details as described in the following table, and then select Save:

An email is sent to the specified email address for verification.

Field Name	Action
Display Name	Specify the name to be displayed in the from address when a user receives an email.
Email Address	Specify the email address.
Purpose	Specify the purpose of this email. The default is selected to User Selection. Leave this field to the default selection. User Selection Default No-Reply Address User Selection and Default No-Reply Address
Allow Only Selected Profiles to Use the From Address	Select this option, and then from the Profiles list, select the user profiles for which the specified email address is used. Leave this field as selected by default.

Go to the mailbox and follow the steps mentioned in the email sent from Salesforce to verify the organization-wide email address.

For information on setting up appraisal management, see Q2 Origination Administration Guide > Setting up appraisal administration.

Steps

To raise a collateral appraisal request:

Log in to your Salesforce account.
Go to (App Launcher) > Applications.
On the Applications tab, and from the list of applications, select the required application.

The loan dashboard is displayed.
Select the Collateral tab.

Collateral's associated with the application are displayed. On this page, you can also add collateral with the application.
Select the collateral to be appraised and then go to Appraisal Management > Appraisal Request.

Note:
The appraisal administrator can view this note on the Launchpad > Appraisal Administration page for the raised collateral appraisal request.
In the Appraisal Request window, perform the following actions:
1. In the Due Date field, specify the date within which the appraisers should submit the bid.
  
  Note:
  The Due Date should be less than the Application Close Date. Else the system throws the following error, "Please check and modify the Application Close Date. Due Date is after the application close date."
2. In the Note field, specify your remark or additional comments that need to be sent to the appraisers as part of the bid invitation.

Select Yes, Submit Appraisal. The Appraisal Management section is updated with the collateral details.

Note:

An email notification is sent to all the authorized appraisers to submit the bid.

Field Name	Description
Application Collateral Name	Name of the collateral.
Collateral ID	This is the unique id generated for the collateral.
Street Address	Address of the collateral where it is located.
City
State
Due Date	This is the date the appraisal administrator provides while raising a collateral appraisal request.
Status	Supported options: Pending - when a collateral appraisal request is raised, the requests are in Pending status Submitted - when a collateral appraisal request is responded to by the appraisers, the requests are in Submitted status Approved - Rejected - when a collateral appraisal request (bid) is rejected by the appraisal administrator or the system, the request is in Rejected status.If an appraisal administrator accepts a bid, other bids are rejected automatically. Expired - When no action is taken on an appraisal request till the due date, manually update the status of the bids to Expired.
Pending Bids	This is the number of appraisal requests sent to the associated appraiser.
Submitted Bids	This is the number of appraisal requests responded to by the appraisers with an estimated bid amount and the date.
Total Bids	This is the number of appraisal requests sent to the appraiser when a collateral appraisal request is created. For example, if two appraisers are associated with the collateral, the appraisal request is sent to both of them. In this case, the Total Bids is 2.
Accepted Bids	This is the number of bids accepted by the appraisal administrator or the system.
Rejected Bids	This is the number of bids rejected by the appraisal administrator or the system.
Note	This is the remark or additional comments the appraisal administrator provides while raising a collateral appraisal request.
Expired Bids	This is the number of bids that are manually updated to the Expired status.

To view the appraisal request and review the bid received from the appraiser, go to Launchpad > Appraisal Administration.

To know more about the actions to be performed on the bid, see Appraisal Administration.