Appraisal and home valuation of a property is a critical aspect of the home sale and purchasing process. For the buyer, seller, and lender, success often hinges on accurate, unbiased appraisal processes and reporting, which is why AMC appraisal companies have become integral pieces of the residential homebuying industry.
What is an Appraisal Management Company?
Appraisal Management Companies, or AMCs, have been around since the 1970s. However, it wasn’t until after the 2008 housing market crisis (where inaccurate home valuations played a pivotal role in market instability) that an AMC appraisal company became a household name among real estate lenders.
Federal Laws & Regulations that Shaped the AMC Market
Following the 2008 housing market crisis, lending institutions and governmental bodies created several new housing laws and regulations, including the Home Valuation Code of Conduct (HVCC). HVCC set forth appraisal guidelines that required lenders to use independent appraisers to ensure properties are valued appropriately.
While lenders are not specifically required to use an AMC appraisal company, AMCs facilitate the finding, vetting, and hiring of independent and unbiased appraisers. Thus, AMCs and appraisal management services became a valuable asset for lenders.
While lenders are not specifically required to use an AMC appraisal company, AMCs facilitate the finding, vetting, and hiring of independent and unbiased appraisers. Thus, AMCs and appraisal management services became a valuable asset for lenders.
How an AMC Works
An AMC acts as an intermediary between the lender and appraiser, helping to exclude any interested parties (loan officer, mortgage broker, homeowner) from selecting the appraiser. In doing so, an AMC appraisal company’s processes eliminate the potential for bias of influence between the lender or seller and the appraiser. While the appraiser receives information on the property to begin a preliminary review, any details regarding the loan (amount, terms, interest rates, etc.) are removed and withheld from the appraiser. Additionally, the appraiser and lender are not allowed to communicate throughout the appraisal process.
All AMC appraisers are licensed, vetted, and trained to maintain compliance and meet Uniform Standards of Professional Appraisal Practices (USPAP) standards. Additionally, AMCs infuse the home selling market with uniform, streamlined operations to help facilitate appraisal processes through various services, including:
All AMC appraisers are licensed, vetted, and trained to maintain compliance and meet Uniform Standards of Professional Appraisal Practices (USPAP) standards. Additionally, AMCs infuse the home selling market with uniform, streamlined operations to help facilitate appraisal processes through various services, including:
- Selecting verified appraisers
- Overseeing valuations & processes
- Ensuring regulatory compliance
- Providing unbiased reporting
Selecting an Appraiser
The most reputable and prominent AMCs integrate thorough and strict vetting processes into appraiser hiring processes, ensuring each appraiser is qualified, competent, and an expert at each project they are assigned to.
When finding the right appraiser, AMCs will often vet candidates based on:
With a wide pool of appraisers, AMC appraisal companies provide the added benefit and ability to select the ideal appraiser based on availability, local knowledge, and skillset.
When finding the right appraiser, AMCs will often vet candidates based on:
- License level
- Education
- Access to MLS information
- Timelines
- Appraisal history & quality
- Local experience
- Availability
- Workloads & capacity
With a wide pool of appraisers, AMC appraisal companies provide the added benefit and ability to select the ideal appraiser based on availability, local knowledge, and skillset.
Vendor & Operational Management
AMC appraisal companies recruit and supervise a complete team of real estate industry professionals, appraisers, and reviewers. Additionally, AMCs ensure each team member is up-to-date on the latest training, industry updates, and regulatory changes. With a well-rounded group of experts, AMCs can better maintain integrity, accuracy, and compliance throughout the entire property appraisal process.
A Step-by-Step Example of the AMC Role in a Mortgage Deal
While each AMC appraisal company will have slightly different operational processes, below is a brief step-by-step overview of how an AMC facilitates the mortgage process:
- Appraisal Request: A lender submits a request for a certified appraiser to the AMC.
- Appraiser Selection: The AMC reviews the assignment details and selects a fully vetted and qualified appraiser based on location, experience, and availability.
- Preliminary Review: Once selected, the appraiser is provided property information to conduct initial research and examine any supporting documentation.
- Inspection Scheduling: The appraiser schedules a time to inspect the property through the AMC, further limiting the communication between appraiser and lender.
- Property Inspection: The appraiser completes a timely physical inspection of the property. The AMC facilitates this process, assisting with any questions, concerns, or issues that may arise.
- Market Analysis: The appraiser conducts research on local comparable sales and other market data to determine and support a home valuation.
- Report Preparation: Once market analysis is complete, the appraiser creates an appraisal report in compliance with USPAP and industry standards.
- Internal Review: Next, the AMC’s team of industry experts review the final appraisal report for quality, accuracy, and compliance. This process further guarantees appraisal accuracy and ensures there are no appraiser independence violations.
- Final Delivery: Once finalized, the final appraisal report is delivered by the AMC appraisal company to the lender.
How Appraisal Management Services Benefit & Protect Lenders
Working alongside an AMC appraisal company can provide a plethora of benefits and protections to lenders, including:
- Quality Control & Compliance: AMC operations are specifically designed to maintain federal, state, and institutional appraisal standards. Each AMC appraisal and appraiser is subject to rigorous review procedures and standards. These practices ensure quality, bias-free reporting that meets all industry benchmarks.
- Optimized & Cost-Saving Workflows: A structured, uniform appraisal process eliminates many costly and time-consuming challenges associated with valuation workflows. AMC companies relieve lenders of the burdens of screening, selecting, and onboarding independent vendors. Additionally, with a pool of local, vetted, and licensed appraisers on their rosters, the level of appraisal expertise AMCs can provide to each project can significantly reduce appraisal turnaround times and underwriting processes.
- Access to the Latest Tools & Technologies: The top appraisal management companies in the country integrate the latest innovative solutions into their processes, including:
- Bias detection tools
- Data standardization technology
- AI & ML integrations for predictive analytics
- Virtual & hybrid inspections and appraisals
- With the latest innovations, AMCs can further enhance quality control and compliance, workflow optimization, and cost savings, enabling lenders to focus more time and resources on borrowers and branding.
Partnering with a Reputable AMC Appraisal Company
From ensuring accurate and timely appraisal delivery to guaranteeing quality and accuracy, AMC appraisal companies and services give lenders the much-needed structure and expertise necessary to maintain compliance and eliminate risks while optimizing operational efficiency.
Tamarisk Appraisals has established itself as a trusted and reputable name throughout the home appraisal management services industry. Our team of industry experts equips lenders with a wide network of vetted and verified valuation professionals and structured appraisal processes. Our operational checks and balances system ensures the highest standards and regulatory compliance. That is why we guarantee our quality standards, providing thorough and compliant services from beginning to end.
Tamarisk’s services:
Tamarisk Appraisals has established itself as a trusted and reputable name throughout the home appraisal management services industry. Our team of industry experts equips lenders with a wide network of vetted and verified valuation professionals and structured appraisal processes. Our operational checks and balances system ensures the highest standards and regulatory compliance. That is why we guarantee our quality standards, providing thorough and compliant services from beginning to end.
Tamarisk’s services:
- Are available in dozens of states, with experienced and local valuation experts throughout the country.
- Offer residential appraisal services for single-family homes, multi-family residences, condos, vacant lots, duplexes, lakefront homes, ranches, and more.
- Provide a free upfront estimate for your unique appraisal needs.
If you’re looking to optimize your lending processes by streamlining valuations, minimizing risks, and ensuring regulatory compliance, it’s time to partner with one of the best AMC appraisal companies on the market. Email Info@tamariskappraisals.com or call (800) 607-9925 to learn more and speak with a Tamarisk expert today!
