The role of the Appraisal Management Company (AMC) was originally created to stand as a protective firewall between Lenders and Appraisers. It was instituted to prevent any type of influence on Appraisers when completing their market evaluation on a property. AMC’s have existed since the 1960’s but not in the numbers they do today; of course, business volumes have grown over that time period.
In the depth of the recent housing market crash, new guidelines were put in place in order to further separate any parties with financial interest in a mortgage loan from the appraisal process.
Today, AMC’s are legally required to work relentlessly with Lenders and Appraisers to maintain compliance on all appraisal orders, and Lenders have new responsibilities for third-party vendors.
This means Appraisers have to stay on top of the report and ensure quality control is maintained in order to deliver an accurate and bias-free report.
The housing market has improved significantly for a variety of reasons since these new rules and guidelines have been put into effect, and now the Lenders, Brokers, Loan Officers or anyone involved from profiting from a loan, have had their influence reduced in the appraisal process.
This would not be possible without the efforts of Appraisal Management Companies who ensure all regulations and guidelines are being implemented throughout the entire appraisal process.