An appraisal management company (AMC) is a third-party company that manages the appraisal process for real estate transactions. AMCs are typically used by lenders, mortgage companies, and other financial institutions to ensure that appraisals are completed impartially and in compliance with industry standards and regulations.
SettlementOne, a leading AMC in the real estate sector, has listed out important tips you should consider when looking for an AMC provider:
Compliance: Ensure that the AMC is compliant with state and federal regulations. This includes the Uniform Standards of Professional Appraisal Practice (USPAP), which is a set of guidelines that govern the appraisal profession.
Experience: Look for an AMC that has a good track record and a proven history of delivering quality services. Consider the number of years the company has been in business, the number of appraisals they have completed, and their client satisfaction rate.
Technology: The AMC should have a modern, user-friendly technology platform that allows you to easily order, track, and receive appraisals. The platform should also be secure and protect sensitive information.
Appraiser network: The AMC should have a wide network of qualified and licensed appraisers who have expertise in the geographic areas where your properties are located. It’s important that your AMC understands your target market.
Turnaround time: Look for an AMC that can provide fast turnaround times without compromising quality. A good AMC should have a system in place to prioritize rush orders and ensure that appraisals are completed within the required timeframe.
Customer service: The AMC should have a responsive and knowledgeable customer service team that can address any issues or concerns you may have throughout the appraisal process.
Cost: Consider the fees charged by the AMC and whether they offer competitive pricing. However, keep in mind that the cheapest option may not always be the best choice if it results in lower quality appraisals or delayed turnaround times.
The AMC manages the appraisal process by ensuring that the appraiser is qualified, that the appraisal is completed in a timely manner, and that the appraisal report meets industry standards and guidelines. The AMC also acts as an intermediary between the appraiser and the lender, communicating any issues or questions that arise during the appraisal process.
By using an AMC, lenders can ensure that appraisals are completed objectively and in compliance with industry standards and regulations. This can help to mitigate the risk of fraud or bias in the appraisal process, which could lead to inaccurate valuations and potentially impact the lender’s financial performance.
As one of the most innovative AMC’sin the U.S., SettlementOne ensures lenders deliver the highest quality appraisals to their customers, while meeting their goals of compliance, operational efficiency and cost-effectiveness. Reach out to our team today if we can be a resource to you with any of your appraisal needs.