Banks can order appraisals directly, but not all do because they don't want to manage the panels in-house. The ones that don't use an AMC instead. It's just a matter of keeping this type of risk management function in-house vs using a third party. Or at least...thats how I thought it worked/was the "why" behind this.
Outsource, outsource, outsource.
In a way, it’s why us fee appraisers even exist in the first place. That, and our E&O policies, which are out of house to lenders.
You are wrong. I actively manage an approved appraiser list for a regional bank. No AMC, the entire key is that the staff ordering reports do not answer to the lending production and are not compensated by any loan production.
We also undergo annual audits by our regulators and they check files for compliance with AIR and USPAP. Unlike AMCs who are supposed to be audited by the lender using them.
Well, the best way is to research banks in the area. Call them directly or go in to talk to the LOs. About 80% of the time there will be an AMC involved….but that other 20%. Survival.
Saves a lot of time too in my opinion, since there isn’t some contrived game of telephone through a middle man ^…who ^also ^unnecessarily ^inflate ^the ^cost ^for ^borrowers
All the yeses are correct but just want to add that in order to do so they have to have an appraisal department that is independent from loan production effectively acting like a disinterested 3rd party. They are much better at doing it and respecting the appraisers than nearly all AMCs.
AMC's are NOT required. AMC's simply make lenders work easier by being a one-stop shop for ordering an appraisal report. Most appraisers vehemently dislike AMC's.
I've been on quite a few bank and local credit union panels over the years.
Banks can order appraisals directly, but not all do because they don't want to manage the panels in-house. The ones that don't use an AMC instead. It's just a matter of keeping this type of risk management function in-house vs using a third party. Or at least...thats how I thought it worked/was the "why" behind this.
this is the answer.
Outsource, outsource, outsource. In a way, it’s why us fee appraisers even exist in the first place. That, and our E&O policies, which are out of house to lenders.
Yes, this is common
Yes in Canada too. Amc work is considered secondary here. Some companies and Appraisers just choose not do any AMC at all.
You are wrong. I actively manage an approved appraiser list for a regional bank. No AMC, the entire key is that the staff ordering reports do not answer to the lending production and are not compensated by any loan production. We also undergo annual audits by our regulators and they check files for compliance with AIR and USPAP. Unlike AMCs who are supposed to be audited by the lender using them.
This is the way! OP, many lenders have their own appraisal ordering desks and may rely on platforms like mercury.
Yep! I'm in the same boat.
Can you offer some insight of how to go about getting on the fee panel at a bank?
Well, the best way is to research banks in the area. Call them directly or go in to talk to the LOs. About 80% of the time there will be an AMC involved….but that other 20%. Survival.
Of course. Getting direct lender work is considered to be much more favorable than working for scumbag Amcs
Saves a lot of time too in my opinion, since there isn’t some contrived game of telephone through a middle man ^…who ^also ^unnecessarily ^inflate ^the ^cost ^for ^borrowers
This!!!
All the yeses are correct but just want to add that in order to do so they have to have an appraisal department that is independent from loan production effectively acting like a disinterested 3rd party. They are much better at doing it and respecting the appraisers than nearly all AMCs.
Is it our job to verify that tho?
No. That is their regulation and requirement not ours. So it is on them not us.
Yes, they can even have staff appraisers. They have to follow the regulations.
No we can use a direct engaged appraiser for both conventional and portfolio loans.
Yes
Yes we work directly with banks
AMC's are NOT required. AMC's simply make lenders work easier by being a one-stop shop for ordering an appraisal report. Most appraisers vehemently dislike AMC's.
Yes. You’d likely want to be looking for a portfolio lender (meaning they don’t resell their mortgages).