When somebody buys a home, their lender may require an appraisal to determine the property’s value and mitigate risk. In an effort to increase oversight and transparency, most lenders utilize an Appraisal Management Company like Class Valuation to complete these appraisals. An AMC acts as a liaison between an appraiser, lender, and borrower. This ensures appraiser independence and improves the reliability of the appraisal while protecting the consumer. But how do AMCs do that exactly? As one of the largest Appraisal Management Companies, Class Valuation is happy to detail some of our most important duties.
An Appraisal Management Company increases credibility
AMCs must ensure that the appraisal isn’t impacted by any bias. We place ourselves between the appraiser, borrower, and the lender in order to make the resulting appraisal value more reliable. AMCs also ensure that their appraisers are following industry guidelines and business rules while remaining compliant with their state rules. The best AMCs also perform a thorough quality control examination to ensure transparency and accuracy for our lender partners.
Constantly evaluate appraisers
Appraisers need the correct education, credentials, and experience to reliably and competently appraise a property. State requirements vary and it takes a great amount of time and effort to become certified as an appraiser. Good AMCs work hard to make sure that their appraisers are up-to-date with their education, that their credentials are current, and they are the best appraisers for the specific assignment. In addition, performance metrics for appraisers should be kept and consistently assessed to ensure that their appraiser panel is full of quality appraisers.
AMCs provide quality control
An AMC must be sure to assess their appraisers on every order that they complete; this constant assessment confirms lenders are receiving quality appraisals. After the appraiser completes the report and delivers it to the AMC the Quality Control team works to carefully examine the appraisal for compliance and completeness against industry guidelines, USPAP, and any client-specific rules. This extra step increases accuracy in an effort to further ensure that each appraisal is of the highest quality.
No two Appraisal Management Companies are alike
Each AMC is unique. When choosing one, you must consider several factors. The top Appraisal Management Companies offer many appraisal services, have nationwide coverage, quick turn-times, and reliable customer service. Class Valuation combines all this with top-notch technology and appraisal process innovations to be the strategic partner you need for quicker closings and more reliable reports. Click here to learn more.