When a consumer is purchasing a home, their lending institution will require an appraisal of the house in order to obtain an updated value of the property to be mortgaged. Many lending institutions use an Appraisal Management Company (AMC), like Pro Teck, to manage the appraisal process.
Federal guidelines now require banks to have a “firewall” between lenders and appraisers. Most banks fulfill this requirement by employing an appraisal management company, rather than directly hiring an appraiser. To an average consumer, this may seem unnecessarily complicated. Why involve an appraisal management company?
The answer is that AMC appraisals add an important layer of oversight to the appraisal process. After our most recent housing market crash, federal laws regulating lending institutions and mortgages changed and began requiring oversight between lending institutions and appraisers. The law required a firewall between loan production staff and those selecting appraisers and ordering appraisals. Appraisal management companies have existed for decades, but for the first time their role of adding a buffer between lender and appraisers is now a legally required part of the mortgage process. These appraisal management companies help consumers obtain unbiased reports for financing and loan servicing.
In order to provide appraisals, an appraisal management company maintains a pool of qualified appraisers. When appraisal requests come in from the lending institution, the AMC assigns an appraiser to provide an appraisal report for the property. The appraiser does not receive any prior indication of the property value and may not have direct communication with the lending institution. The appraiser will provide an appraisal report based on the Uniform Standards of Professional Appraisal Practice (USPAP) guidelines. If the appraiser runs into any issues, the AMC appraisal company may assist.
After the appraisal report is submitted, the AMC will perform quality assurance to verify that proper practices were followed throughout the process and that the data is accurate. If they encounter issues at this stage, they may ask the appraiser for clarification or corrections.
Once the report has met the AMC’s standards, it is sent to the lending institution. The AMC appraisal must be used unless the bank can prove that it is inaccurate or that there was appraiser bias. These new federal regulations also prohibit the lending institution from obtaining multiple values and using the one they find more favorable.
We maintain a nationwide network of experienced appraisers. They hold all required licenses and/or certifications and are all subject to our rigorous quality control process. We provide residential appraisal product for conventional financing, FHA financing and loan servicing. Our appraisers can deliver the following reports:
To learn more about Pro Teck’s appraisal management services, contact us today.
Pro Teck offers a full suite of valuation products and services. We don't favor one solution over another - we review your requirements, your risk tolerance and all regulatory considerations in order to recommend the best solution.