Does the law require lenders to use an independent appraisal management company (AMC)?
By law, lenders aren’t required to hire the services of an independent AMC; however, doing so not only shortens turn times but more importantly, it ensures that all relevant laws and regulations with regard to property appraisal are complied with.
Additionally, AMC’s will make sure that the valuation process is undertaken in accordance with the Uniform Standards of Professional Appraisal Practice.
Here’s why you should hire an appraisal management company:
1. AMCs have the network and resources to find you the best appraiser
AMCs have a pool of licensed appraisers they can tap anytime, which makes it easier to find the right appraiser based on your requirements and location. Understand that proximity is a key factor in appraisals as it means the appraiser already knows the neighborhoods inside out. Proximity also facilitates the appraisal in a way that could expedite the process thus ensuring shorter turn times.
2. Appraisal management companies have a thorough vetting process for appraisers
AMCs know that every appraiser assigned to clients reflects their business, which is why they have a very meticulous vetting process to ensure that they partner with only the best in the industry.
3. An independent appraisal overseen by an AMC ensures unbiased results
A lender that has their in-house appraiser or one that directly hires an appraiser may be accused of manipulating the process to work in their favor. With an appraisal management company that works as an intermediary, incidents like this won’t ever happen because any communication between the lender and the appraiser will be facilitated by the AMC.
4. AMCs thoroughly review the results to ensure compliance and accuracy
Last but not the least, AMCs review the results provided by the appraiser to ensure that every state or federal law and regulation in effect at the location of the property is strictly followed. This ensures that the integrity of the report isn’t compromised in any way.
For unbiased, accurate, and regulatory compliant appraisal, working with an AMC is the best way to go.
Exactus AMC Appraisal for Mortgage Lenders
Exactus AMC provides appraisal management services in 48 states and Washington, D.C. Wherever you need an unbiased, regulatory compliant appraisal, we will be there to help you every step of the way. Please feel free to contact Exactus AMC here . Or you may also reach them at (636) 206-4919.