While investigating options for survival in the appraisal industry post-HVCC-2009, I started to research (as I'm sure many of you have) what it would take for our company to become an AMC (appraisal management company). What I found out was that according to TAVMA, we already are [by definition] an AMC. (Michael Talbotto had mentioned this to over six months ago... and now I say to you, Michael... ‘Bravo').
Here are some key points that you (as an appraiser/appraisal company) may want to take note of:
"Appraisal firms typically lack capacity to perform other mortgage services, whereas most AMCs offer title, flood reporting, closing service, etc. Hence appraisal firms cannot claim "one stop shop" status."
This is a hoop I think could easily be jumped through ...
"Appraisers for appraisal firms tend to work on orders generated only by that firm. AMCs hire small and large firms but can claim almost no exclusivity to individual appraisers' book of business"
If everyone has to go through an AMC next year, aren't we all working for AMCs and none of us working independently?
"Does not develop and report an opinion of value (i.e. engages in the practice of appraisal). "
As long as the appraiser is solely responsible for the final value, then this is covered.
Now some of you may remember that I have a track record of scorning appraisal management companies. Yes; There are three major points that irk me about AMCs:
- Most are cutting salaries of appraisers to the point where appraisers cannot survive on appraisal alone or the appraisers choose quanitity over quality (I'm sure that is not what the creators of the HVCC had in mind).
- Their clients are mostly lending institutions and there is little to no advocacy on appraiser's behalf (which really negates the entire HVCC rule about excommunicating lenders and appraisers, doesn't it?).
- Many are not experts in either appraisal or lending and so the communication is cumbersome and much of it lost causing time and additional confusion and inevitably a lessor product.
With an appraiser controlled AMC, all three of these points could be eliminated (promise me if you look into doing this as an appraiser you do not become greedy and forget about bullet point #1).
There may be some updates in how you pay your employees and you may need to dub yourself a new personal title at the company, but otherwise I see the difference between Appraisal Company and Appraisal Management Company is like you saying to-ma-toe and me saying to-mah-toe... (so... let's call the whole thing off?).
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