The Beginning of the End for AMC's

The long national nightmare may be over soon!  The House financial services committee passed a bill which had an amendment eliminating HVCC.  We can only hope this is the beginning of the end.  My experiences with appraisal management companies (AMC) is that they do nothing more than take money from the consumer and the appraiser, delay closings and artificially lower home prices.  Good riddance.

On another front, FHA will be enacting new guidelines on ordering appraisals.  One of the guidelines is that all money collected for an appraisal must go to the appraiser.  This would effectively mean no AMC because there will be no money in it for them.  In an astonishing flash of sanity, the new guidelines will also insist that the appraiser be qualified (state certified) and have geographic competence(know the market where the property is located).  It will also try to prevent some of the perceived problems of appraisals.  There will no appraisal shopping and trying to influence the appraiser.  It will prevent any one who has a financial stake in a particular real estate transaction (commission) from ordering an appraisal or communicating with the appraiser.  This seems a bit silly because this can easily be circumvented.  However, why quibble when FHA is making sense.