While appraisal management is not a new concept, the change in the laws that forced their use has caused much speculation about their use, both for appraisers and lenders alike, but for completely different reasons.
Appraisers have several gripes about the appraisal management process and implementation. The first of which is the ethics of the management firms. Conditions have improved for the appraiser, but many are still upset about unfair pay splits, difficulty in getting jobs and the time frame that the firms require to have the job completed.
As the appraisal management companies have increased and experience more competition, they have been forced to change their policies to be more friendly to the appraisers. Where some companies used to take up to 50% of the appraisers fee, most are using a flat fee scale that can be as low as 5%. Also, when they used to require a 24 hour turn time, many now are accepting 48 to 72 hour turn times. Industry standards are definitely changing in favor of the appraiser.
The second issue appraisers have with the appraisal management industry is the inability to talk directly to the lender. While the management companies do serve the purpose of reducing the amount of possible improprieties that can happen with appraiser/lender communication, the inability to communicate also makes it more difficult to solve simple problems that must now go through a middle man.
A third issue appraiser have with appraisal management is just the fact that they have to spend a lot of time signing up with each one. Most companies want an application that can be filled out online, a signed contract that releases liability of the management company, as well as copies of the current state license and E&O insurance. Appraisers could spend days signing up for the hundreds of management companies to bring in the required work load they desire.
The management companies are not going away, although it will continue to evolve, hopefully, in a more beneficial way for the appraisers and lenders.
Signing up with a complete list of appraisal management companies will give you the greatest chance of bringing in quality business. For a list of over 300 verified appraisal management companies, go to www.amc300.com.
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See the original post here: Appraisal Management – Is it Working For Today’s Appraiser?
