The Maryland-based Coester Appraisal Group recently released its annual survey on appraisal management companies (AMC). According to AppraisalNEWSCAST.com (the Coester blog), the survey sheds light on industry propaganda. “After further analysis of the data from the Annual Coester Appraisal Group Vendor Survey, it seems like many of the implications made regarding the state of the mortgage industry as a whole have been debunked.”
Here are the highlights. You can tell us in the comments section whether or not common AMC complaints have been “debunked” by the survey.
The Coester results state that one third of respondents travel 15-20 miles to complete an appraisal (an additional 31.4% travel 10-15 miles). Regardless of where the order comes from (AMC or a lender) the average appraisal turnaround time is 4-5 days from the receipt of the order.
According to the survey, AMCs are not earning a huge profit margin on the backs of appraisers – they are only taking 30 percent of the independent appraisers fee.
Finally, the survey noted general concerns of appraisers. The most prevalent concerns focused on set or reduced fees. Other concerns include turnaround time and pressure; poor communication from AMCs; and lack of expertise/uneducated AMC personnel.