Real estate appraisers need to carefully research various appraisal management companies (AMCs) in order to find the best working relationship possible. Not only do you have to consider your business’ bottom line, but associating yourself with a less than reputable AMC could also negatively impact your company’s reputation and, subsequently, revenue.
If you’re considering joining a national AMC, it is best to have a checklist of prerequisites before you sign up. Consider the following guidelines:
Approval Process: One of the most crucial things to initially investigate is the AMC’s approval procedures and requirements. If it is too simple to become an affiliate, then the chances are that particular AMC is solely in it for easy money and doesn’t really concern itself with providing a useful service.
Some of the items appraisers should be required to divulge and have for business include:
- Copy of state license(s)
- Types of appraisals performed (i.e., FHA, commercial, residential, etc.)
- Copy of errors and omissions insurance
- System requirements (for compatibility with the AMC’s online management)
- A resume and/or samples of past appraisals
Membership Fee or Referral Fee: Make sure you read the fine print and discover if the appraisal management company requires a monthly or yearly membership fee for being a part of their network. Some AMCs consider their business to be different or select, thus enabling them to charge a fee.
Likewise, other AMCs only charge a percentage for each referral completed, making the process more cost-effective.
Home Valuation Code of Conduct (HVCC) Compliance: Although it may seem elementary, it still is worthwhile to verify the AMC’s standards for HVCC compliance. Even today, there are still a few companies that are slow to change their procedures and stay up to date with the most recent industry modifications.
Payment Schedule: Depending on your business needs, it might be important to find out how and when you will receive payment through the AMC. Due to the new requirements for paying appraisers (i.e., borrowers or lenders cannot pay appraisers directly), inquire on the method of payment – which can include checks or ACH – and when you can expect delivery of funds, such as once a week or twice a month.
Accept Preferred Lenders: In order to keep working with your preferred lenders, ensure that the AMC will give your chosen lenders top priority in the selection process.
Conducting additional research on AMC’s policies and procedures will aid in finding the right business relationship for your company’s needs and expedite the growth of your client base.
Eamon Arnett is writer and CEO of 48HN.com (http://www.48hn.com), a website featuring Appraisal Management Company.
[tags]national amc[/tags]
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