The new Home Valuation Code of Conduct has put experienced real estate appraisers out of business, forcing them to use Appraisal Management Companies to get the bulk of their appraisal orders.
With the passing of the Home Valuation Code of Conduct (HVCC) on May 1, 2009, appraisers have been working through third party Appraisal Management Companies to complete appraisals for banks and mortgage company’s. Many appraisers have decided to close their doors rather than try to locate fair appraisal management companies that offer competitive rates.
Most real estate appraisers feel that the passing of the HVCC has forced them to work with AMCs that demand unrealistic turn times, while reducing fees as much 50%. Many experienced appraisers have been unable to stay in business when forced to accept the lower fees while others have chosen early retirement, leading to a lot of inexperienced people doing the valuations.
Other problems resulting from the HVCC include higher costs for consumers, loss of income for independent real estate appraisers and increased loan turn times and fees. Landsafe and Countrywide have recently been sued due to over inflated fees being charged to their customers.
Until the HVCC is possibly changed, appraisers will be forced to sign up with Appraisal Management Companies to receive orders. That is just the way it is. You can either play or go home.
There are hundreds of AMCs signing up vendors and lenders. Many of them are legitimate companies offering full compensation for appraisal work, while others request payment in advance to become members of their AMC. You really need a good list of companies when going through the sign up process.
Some fellow appraisers are stepping up to help others wade through the appraisal management sign-up process and avoid companies trying to scam appraisers out of more money. Bryan puts the top appraisal management companies right at the top of the list. They tend to have the most national work and largest number of clients in all areas.
If appraisers are looking to stay in business, they really need to apply to the best appraisal management companies. Appraisers can save hundreds of hours by signing up to the best appraisal management companies from the beginning. Finding a good list is very important as there are many poor quality AMC directories available by searching on the internet. You need a list that puts the best companies first and that are national companies.
Get started! It is a new year and a great time to sign up with more AMCs!