Who Controls The Appraisal Management Companies?

It was a little over a year ago that the entire appraisal industry was turned upside down

. Due to new laws and the influx of appraisal management companies, a customer can get confused with the false representations, promises or guarantees. Appraisers are left to wade through the confusion that has become their profession. There are those that feel that the days of reward and incentive are long gone. Appraisers that were once highly regarded in their communities and that were known as leaders now feel that the community spirit that helped to serve the community is now gone from their profession.

Appraisal management companies, also called AMC's, have come under debate as to whether not they can really service the community. There are questions as to what they truly contribute in the appraising process. Many voices have been heard in this debate, but majority of voices come from the actual appraisers that work closely with the AMCs. Their complaints seem to stem from the fact that the seasoned, knowledgeable appraisers have been reduced to standing in line on the roster held by the appraisal management company.

Many feel that the root of the problem lies with the AMCs themselves. These companies are set up to give everyone an opportunity to make money, but everyone has to wait their turn to do it. If a company has, for example, 540 appraisers for a residential area, there are 539 more in rotation after the first appraiser gets a job, before he or she can get the next one. In some areas, there is less of a wait time and in other areas there are more, leading some appraisers to simply leave the business in an attempt to find a better income. Many appraisers are not happy, for obvious reasons, and have continually voiced their complaints, to no avail.

With the new method of rotation, there are many that are literally waiting to be next in line for an opportunity to make their money. This new method of doing business came about when the HVCC made changes to the existing system in the middle of 2009. The HVCC is in charge of getting rid of any bias or potential bias brought on by influence from the oppressors. In the past, the HVCC has been responsible for restricting the mortgage brokers from choosing their own appraisers. While it is acceptable for a bank to hire an appraiser, the bank employee that makes the decision for a hire can not be directly involved in any form of the loan process. The HVCC is also responsible for getting banks to deal with third party appraisals. To complicate the process further, the bank giving the loan is allowed to use an appraisal management company that the same bank owns. For example, LandSafe is an appraisal management company that is owned by Bank of America, and there are many appraisal management companies that are owned, at least in part by the bank.

There are many that do not agree with this business practice and hope for heavy regulations for the AMCs in the future.

by: Ann Williams

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