The Appraisal Institute reports on a finding by Global DMS that the number of lenders directly ordering appraisals is roughly the same as the number of lenders using AMCs. According to the report, AMCs may be suffering from client dissatisfaction, particularly when the result is increased fees to consumers and decreasing fees to appraisers.
Global DMS stated that large lenders have been using AMCs but smaller lenders might find it more economically beneficial to order appraisals in-house.
Said the article “One big reason for the boom in AMC business is due to a lack of lender understanding about the new rules covered in the HVCC. A common lender misconception is that all appraisal orders must be outsourced in order to be in compliance with the Code. This, however, is not true.”
For more information on the HVCC visit www.realtor.org/hvcc.