Appraisers Continue to Speak out against AMC Loopholes in the HVCC

From the Appraisal Institute's eNewsletter:

"In the continuing saga of appraisal regulation, a new development has appraisers worried: the rise of appraisal management companies."

"In an article appearing in the Feb. 5 edition of Business Week, several appraisers, including the Appraisal Institute’s Director of Government and External Relations, Bill Garber, weighs in on how the soon-to-be-implemented Home Valuation Code of Conduct may actually prove counter-productive to the goals of appraiser independence and improved appraisal quality."

As Garber warns in the article about improper influence on appraisers, “[The new industry-wide rules] have transferred the problem to these appraisal management companies, which are not regulated by anybody."

James B. Lochard, Director of the FHFA says that federal housing officials will hold AMCs accountable:

The Business Week article also discusses:

• LSI Fax to appraiser "Please correct the following issues (value) and resend the appraisal in two hours"
• Former loan processors forming AMCs to maintain ties with Mortgage Brokers
• Former appraiser (licensed surrendered) forms AMC

Click here for the full article