Why AMCs?

An Appraisal Management Company (AMC) works with lenders and appraisers to facilitate the ordering, tracking, quality control and delivery of appraisal reports.

Historical Context

In 2009, New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac, with support from the Federal Housing Finance Agency, developed the Home Valuation Code of Conduct (HVCC). The rules were developed to isolate parties with a financial interest in a mortgage loan transaction from appraiser selection and retention.

While no longer in force, HVCC influenced the Appraiser Independence rules now found in The Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, AMCs have proliferated as many lenders use their services to provide strict adherence to Dodd-Frank, Truth in Lending and Interagency Guidelines.

The AMC's Role

The AMC performs the administrative functions involved in the ordering, completion, and delivery of an appraisal report. Each AMC establishes processes based on the AMC's business model and corresponding regulatory requirements. Appraisal management companies do not perform appraisals.

The AMC Process

• The AMC assigns an appraisal using criteria including local experience, proximity, license level, education, and quality history
• The AMC places the order, confirms borrower contact information, lender instructions, and due date
• During the process, the AMC may communicate with the appraiser on issues or discrepancies
• After completion, the appraisal is sent securely to the AMC for quality review
• After quality assessment, the appraisal is available to the lender/Client

AppraisalMark Quality Assurance

AppraisalMark has developed screening and ongoing assessment processes and benchmarks to measure and track performance. These include on-time performance, communication, number of revisions required and various additional criteria to monitor an appraiser's eligibility for continued assignments.