7
A FOCUS ON COMPLIANCE.
Without a doubt, compliance is a critical factor to weigh when considering an AMC. Non-compliance is the fastest way to put an AMC out of business, and the fallout can have a devastating impact on the lender.
8
CUSTOMER SERVICE.
Does the AMC employ an in-house compliance officer, or do they outsource to a vendor? The AMC should disclose information about this executive or vendor, including their responsibilities with regards to identifying and interpreting state licensing regulations, appraiser independence rules, and the Uniform Standards of Professional Appraisal Practices.
Your lending institution needs to solve a problem with an appraisal or to discuss how best to handle a unique property, and it’s up to your AMC to properly advise you on that problem. If you’re constantly weaving through a maze of automated call centers without talking to a human, are you seamlessly addressing the problem? Do your research upfront and evaluate how the AMC support staff, chief appraiser, and their written or verbal expertise covers their overall business practices and industry knowledge. Is this information accurate and, more importantly, helpful in supporting your communication of a resolution to any issue with the borrower or a concerned realtor?
The AMC should be able to show exactly how it manages its licensing requirements for each state in which it operates. It should monitor state regulations for implementation of AMC licensing requirements and have a clearly defined process for maintaining active licensing.
Once past the consideration stage, take note of the everyday interactions you have with the AMC. Do they frequently communicate product and regulatory updates? What about the billing process? Is it straightforward or bogged down?
In addition to these compliance considerations, those involved with placing or reviewing appraisal orders should be required to take and pass a current USPAP course every two years.
Most importantly, your AMC should feel like part of your team. Doing business with an AMC should feel like having a close division of your company strictly dedicated to appraisals. Once your interactions become second nature, and you’ve gained a sense of trust and honesty with your AMC, chances are you’ve found a partner worthy of a long-term relationship.
DOING BUSINESS WITH AN AMC SHOULD FEEL LIKE HAVING A CLOSE DIVISION OF YOUR COMPANY STRICTLY DEDICATED TO APPRAISALS.
32 MORTGAGE BANKER | JANUARY 2021
