Many lending institutions are concerned about the compliance aspect of Appraisal Management and how they are protected in their day to day business. With the changes in the industry over the last five years, there is a definite need to do your homework when selecting your vendors including Appraisal Management Companies.
5 questions to ask your Appraisal Management Company to ensure compliance:
1. What is your onboarding and registration process for Appraisers?
2. What processes are in place to ensure Appraiser Independence?
3. What is your method for selecting Appraisers for assignments?
4. What is your quality control/review process for appraisal reports?
5. How do you determine your customary and reasonable Appraiser fees?
The answer to these questions should give you a very good idea of whether or not the Appraisal Management Company places a high priority on compliance or not. You will also learn of their knowledge and expertise in the area of compliance with regards to the Dodd Frank Bill and USPAP. We feel very strongly that any financial institution looking to outsource the Appraisal Management aspect should be asking these questions before engaging any AMC as a vendor representing their company.
Who you partner with speaks volumes about your business. Do your homework. Who do you want representing you?