With the new HVCC rules coming into affect in mid 2009, appraisers found out very quickly that working for appraisal management companies wasn’t an option, but necessary to stay in business. Finding these appraisal management companies can become very tedious and frustrating. This article will give you the top 5 reasons to buy an appraisal management company list or directory.
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At this months Southern California Chapter Meeting for appraisers, an OREA representative stated that during the last year, over 5,000 appraisers have closed their doors, mostly due to lack of work.
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On average, appraisers are signed up for only 10 - 12 appraisal management companies.
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Over the last 2 years, the average appraiser has lost over half of his income due to the new HVCC rules.
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Most appraisers don't know where to find or how to look for the appraisal management companies. Most think they don't have the time.
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There are over 300 Appraisal Management Companies nationwide and the numbers are growing quickly.
So, What Can an AMC List Do for You?
Reason #1 -Appraisal management companies are hard to find
Unfortunately, you can't look up appraisal management companies like you would any other business. AMC's are listed under many different names and are often marketed to the lenders they are trying to recruit. You could spend hours looking, with few results
Reason #2 -Expand your appraisal business
At this point, if you want to expand your business, you are going to have to sign up with as many appraisal management companies possible. Outside of soliciting work from independent banks, divorce attorneys or CPA's, you have few other options. Taking the time to sign up with as many as possible (some lists have over 300 AMC's listed) widens your scope.
Reason #3 - Make more money
Right now you may make more money per appraisal by working independently, but think about this. If you are only doing 10 appraisals per month at an average of $400 each, you are bringing in about $4000. Not bad...but what if you added another 20 per month and made $300 for each? That would bring in another $6000 per month!
Reason #4 – FHA will be following much of the same HVCC rules beginning next year
Not only do you now have to be a certified appraiser to do FHA appraisals, but starting very soon, their orders will be sent through appraisal management companies also. Don't get left behind. Keep up on the news and make adjustments accordingly.
Reason #5 - Find local and national AMC's that DON'T TAKE LARGE COMMISSIONS OR UP FRONT FEES OUT OF YOUR POCKET.
Ok, so we all know that there are some awful AMC's out there that make you bid on jobs and then complete them within 24 hours. That is just ridiculous and irresponsible for appraisal management companies to be expecting, if they want quality work (and as appraisers we know it!). Fortunately, there are many companies out there that take low commissions and are reasonable in their turn-around times.
The obvious solution for todays appraiser? Sign up for as many management companies as possible. The paradigm has changed for everyone, including the lenders, but you can grow your business and you can make more money. It just takes a little effort focused in the right direction.
From one appraiser to another...it is worth the effort.
HVCC Frequently Asked Questions (FAQs)
In order to curb some undesirable effects of the residential appraisal process Fannie Mae adopted an agreement that went into effect May 1, 2009. This article includes the frequently asked questions about the new HVCC ruling.
Signing Appraisal Management Company Contracts
When the HVCC rules came into effect in mid 2009, appraisers learned quickly that working with appraisal management companies wasn’t an option, but a necessity. Although there are many small “here today, gone tomorrow” amc’s, the larger companies were well prepared with their legal contracts and processing software to bring in and maintain thousands of appraisers nationwide.
Do You Need AMC Appraisal Management Companies?
AMC appraisal management companies are the main process by which appraisers now get orders that are funded by FannieMae and FreddieMac, and soon, FHA as well. There are still many ways to get orders outside of the typical lending institutions, although it does take more effort from the appraisers to get them.
