Ronald Reagan famously joked “The most terrifying words in the English language are: I’m from the government and I’m here to help.”
But after the real estate, banking and financial problems of 2008, it was clear that some additional oversight was needed in all areas moving forward. On April 30, 2015, a final rule was enacted by a group of government oversight agencies to implement the minimum requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) to be applied by participating States in the registration and supervision of appraisal management companies (AMCs).
The rule establishes the foundation for a National AMC Registry and outlines certain minimum requirements each state must meet which include a variety of registry requirements and oversight controls. Under the final rule, Federally regulated AMCs do not need to register with a State, but are subject to the same minimum requirements as State-regulated AMCs.
The final rule also implements the requirement for States to report to the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC) the information required by the ASC to administer the new national registry of AMCs (AMC National Registry).
As anyone in the industry can tell you, it’s still a work in progress, but appraisal management companies are no stranger to tighter restrictions, and no AMC is more prepared and ‘ahead of the game’ than Nationwide Appraisal Network (NAN).
“We’ve got nearly nine thousand approved appraisers in our network,” says NAN co-founder Cari Burris. “So conformity to national and state standards is vital to our success. We’re licensed, registered and ready in all 37 of the states that have oversight policies in place, and we feel confident that the remaining states will have regulations in place sooner than later. When that happens, we’ll be ready for them as well. It’s all part of being truly national in scope.”
Of course, there are still some questions about how the intricacies of new appraisal disclosure requirements should be interpreted. AMC’s provide appraisals for about 60% of home loans in the US, and a national company like NAN must be on top of each states’ nuanced differences when it comes to appraisal rules and regulations. “We have Quality Control and Compliance systems that are second to none,” says NAN co-founder Joni Pilgrim. “We’re dedicated to ensuring that the thousands of appraiser in our network conform to USPAP standards and each one welcomes lenders, banks and credit unions to view our Compliance Portal where, they will find transparency in all NAN’s procedures.”
The bottom line is this: NAN is 100% dedicated to a positive working relationship with oversight entities and a mutually beneficial relationship with our appraisal and lending partners. Most of all, we strive to be a valuable resource for the end consumer. As one of the top AMC’s in the country, we are uniquely qualified to meet all three of those goals. So whether you’re a fan of big government or small, Republican, Democrat or Libertarian, rest assured that when it comes to the new regulations, there’s nothing to fear. We’ve got it covered.
About Nationwide Appraisal Network- NAN is an industry leader in appraisal management, providing a unique approach to valuations through customization, innovation, and quality. Visit us at www.nationwide-appraisal.com or call 888.760.8899