Choosing the right strategic partner can make or break your business!While all vendors are important to the lender’s supply chain, selecting the right AMC to manage the assessment of your loan’s collateral can have a major impact on your bottom line.
As it turns out, Kindergarten may have provided the most prophetic life and business lessons. This is most certainly true in running an appraisal management company (AMC). Sure, business school provided a wide-ranging foundation that has made a tremendous difference, but nothing compares to the wisdom of Ms. Parker in the early 1970s.
What Does an Appraisal Management Company (AMC) Do?
Short answer – the most capable and best-performing AMCs step in to remove the following burdens off mortgage lenders:
I used to know how many Appraisal Management Companies (AMCs) there were, but so many come and go; it’s impossible to keep track. That leads me to an intriguing thought — Why? And, if I were an appraiser in today’s environment, how would I navigate my options? What would I need from an AMC?
I’d want what we all seek — to maximize my income with the least amount of hassle and frustration. An enjoyable and reciprocal professional relationship.
It was a much different world before the days of HVCC and Dodd-Frank. Before this legislation, about 80% of appraisal assignments came directly from lenders and local sources. Today, it has flipped to the exact opposite. Therefore, engaging in the AMC model is imperative for most appraisers.
While not everyone likes Dodd-Frank, appraisers do benefit from it, for example:
‘Sorry, I am not looking for another vendor. I only engage with strategic partners.’ That should be the position of every lender out there looking for service providers. But is it?
- Seeking consumers with financial needs
- Developing products
- Underwriting and funding loans
- Navigating legal, regulatory, and compliance frameworks
- Servicing portfolios of loans
This skinny-down trend has steadily dismantled prior decades of the seismic sized scope-creep pursued by lenders, especially the big ones, trying to do absolutely everything in-house. It’s not our place to judge how well that worked, although the industry-wide retreat from those days likely tells the tale.
Today, almost every internal department and function can be up for consideration for outsourcing, even underwriting. Some of the areas that often loom large in such evaluations are loan servicing, IT, operations, and appraisal management. Being an AMC, we shall focus on the dynamics in play that generally cause lenders to outsource to AMCs.
United States Appraisals, an innovative provider of residential appraisal management solutions, today announced the launch of Valuguard Home Inspection, a mobile application that enables independent appraisers and property data collectors to remotely work with homeowners to provide essential property images and data.
It is always interesting to see the creative and powerful ways that people find to combine their passion with helping others. War Horses for Veterans, our March USA Cares recipient, does that by bringing horses and combat veterans together.
Topics: USA Cares
With Veteran’s day in November, we felt it appropriate to choose a Veteran-focused organization for November’s USA Cares. Veterans Community Project is a shining example of what can be achieved when people with a focus join with their community. VCP was founded in 2015 by a group of Combat Veterans. Their mission is clear “…supporting every man and woman who took the oath for our country. We are determined to make a difference in the lives of homeless Veterans, a task accomplished by the community for the community.”
Topics: USA Cares