Appraisal Management Company (AMC) Benefits
What is an AMC?
An Appraisal Management Company (AMC) is an independent company through which mortgage lenders order residential real estate valuation services for properties they are considering extending loans to homebuyers.
What are the benefits of using an AMC like CSS?
Improved Customer Service
- High-volume periods during the year—which can be unexpected—can result in too little staff to manage appraisals, which produces poor customer service.
- Low-volume periods can result in too many staff members, which adds to high mortgage origination costs.
- CSS can manage such staffing problems with ease, as we are able to spread staff across many lenders and respond quickly to high- or low-volume demands without sacrificing quality or building up unnecessary costs.
Cost Savings and Efficiency
- CSS’s fixed costs are spread across many lenders, so you can be sure that you’re not being charged unreasonably.
- Management fees can be passed on to borrowers and not paid by lenders. Conversely, the sizeable costs of in-house appraisal management are difficult for lenders to pass on to the borrower, due to RESPA and other constraints. As a result, most in-house costs negatively affect the lender’s bottom line.
- Switching to CSS’s appraisal management services can make in-house staff redistribution possible, providing potential efficiencies in other areas of the bank.
Improved Turnaround Times
- Lenders who have switched from in-house appraisal management to CSS have realized significantly reduced turnaround.
- CSS is equipped to focus on efficient follow-up with appraisal assignments. Because of our outside relationship with appraisers, follow-up often produces faster results than communication between in-house teams who work with long-time preferred appraisers.
- Turnaround times are documented in month-end reports, and CSS works hard to address any shortcomings.
- Appraiser independence can be confirmed, while in-house appraisal management leaves room for audit questions.
- Robust quality control scorecards are implemented for each appraisal.
- Each appraiser must pass a compliance certification.
- Ensures compliance with customary and reasonable fee regulations.