Fannie and Freddie will now allow mortgage brokers to order appraisals through a lender’s designated AMC.
From Freddie Mac’s Home Valuation Code of Conduct FAQ:
Can a broker initiate an appraisal request through a lender’s designated appraisal management company (AMC)?
This process is permissible provided all of the following criteria are met:
The AMC is specifically authorized by the lender to act on its behalf and the AMC is not acting on behalf of the mortgage broker,
The AMC selects, retains, and provides for payment of all compensation to the appraiser on the lender’s behalf,
The appraiser’s client is the lender and the appraiser correctly identifies the lender as the lender/client on the appraisal report,
The lender has policies and procedures in place that comply with the Code, and
The lender ensures that the AMC has policies and procedures in place that comply with the Code.
This keeps a firewall between the appraiser and the broker, but allows the mortgage broker to obtain an appraisal if necessary. The big question though, is how any of this is enforced. I still haven’t seen any news about that.