What an AMC does?
What an AMC does?
There are two options for Federal Compliance.
appraisals and evaluations through an appraisal management company (AMC) like
Market Valuation Services Appraisal Management Company, with the AMC fee being
passed on to the borrower.
2. Create an
in-house appraisal/evaluation management and review department at your expense.
It's not just separating the appraisal/evaluation ordering from the loan
production staff, it's also reviewing the appraisal and evaluation to ensure it
meets USPAP and Appraisal Standards.
What does an appraisal management do?
the appraisal order
the best appraiser
• Audit the
• Ship the
• Field any
Why use an Appraisal Management Company (AMC) before the Interagency
Appraisal Guidelines (IAG)?
There were several good reasons why banks used appraisal
management companies prior to The Interagency Appraisal and Evaluation
Guidelines (usually national and larger regional banks):
reduces the opportunity for fraud between lenders, sales people, and the
appraiser, thus reducing losses due to overvalued security.
2. But the
major reason is it saves the bank money!
cannot compete with the efficiencies that an appraisal management company
appraisal management company fee is part of the appraisal fee and is passed on
to consumers at closing, not to the bank.
3. RESPA -
It's very difficult to define and recover the cost of an in-house management
department as a closing expense that is compliant with RESPA. In-house costs
are at the bank's expense, directly affecting your bottom line profit.
bank management for other more productive responsibilities.
appraisal management companies have stringent quality control programs that
increase the overall quality of the appraisal report.