In most of my discussions with appraisers who hate the HVCC, the conversation inevitably moves to AMC’s. They believe that the HVCC will push lenders to use AMC’s when hiring appraisers. This is something many appraisers find reprehensible, as they believe that AMC’s are no better than anyone else at promoting appraisal independence.
However, with the US Government taking control of Fannie and Freddie, there are “rumors on the internets” that lenders are beginning to move away from AMC’s.
Appraisers Forum (Registration Required) has just such a discussion taking place. Here are two entries under Goodbye AMC’s:
I just received a call from a large lender that had been using an AMC in anticipation of Cuomo’s HVCC. They informed me that they are no longer using the AMCs as an intermediary.
And another one:
Two of my lender clients appear to be doing the exact same thing. They have “investigated” using AMC’s due to aforementioned HVCC. I have spoken with them and they are now TOTALLY removing the AMC from their models. They want to continue to do business with my firm and, according to them, that is exactly what they are going to do.
Granted these are just rumors, but my guess is we will begin to see lenders move toward more quality appraisals, whether that be from an AMC or just another appraisal shop. Given the recent real-estate decline, I suspect lenders are taking a much closer look at the appraisal and demanding and paying for a better product.
Are any of you seeing a similar move?
Manager of Appraisal Specialties