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 February 19, 2009

Amended Appraisal Regulations Draw Fire
As of May 1, 2009 all responsibility for the managing of home appraisal will change over to a middleman known as AMCs, or appraisal management companies.
Under these new federal regulations, loan officers and mortgage brokers will not be able to directly order home appraisals. Now they are expected to utilize third party appraisal management companies, which are intended to prevent them from putting any dishonest pressure on appraisers to improperly inflate the value of a property.

Critics of the new plan question who will be regulating the new appraisal management companies.

Industry professionals as well as government officials question the new procedures sighting that the marketplace is still vulnerable to appraiser pressure because incentives are still available in order to get deals completed and to collect fees, while others state that the new AMCs will indeed be overseen and if violations are discovered, appropriate actions would be taken.