Appraisal Management Company (AMC)

Appraisal Management Company – an external third party that works between banks/lenders and real estate professionals to contract with licensed and certified appraisers to perform appraisals, manage the entire appraisal process, and to review and verify the work of appraisers.

What Does an Appraisal Management Company (AMC) Do?

The Role of an AMC in the Mortgage Process

When a consumer is purchasing a home, their lending institution will require an appraisal of the house in order to obtain an updated value of the property to be mortgaged. Many lending institutions use an Appraisal Management Company (AMC), like SVI, to manage the appraisal process.

To provide appraisal services, an appraisal management company maintains a pool of qualified appraisers. For every mortgage application process, every AMC goes through the same general process:

• An appraisal request comes in from the lending institution and the AMC assigns an appraiser to provide an appraisal report for the property.
• The appraiser will provide an appraisal report based on the Uniform Standards of Professional Appraisal Practice (USPAP) guidelines.
• If the appraiser runs into any issues, the AMC may assist.
• After the appraisal report is submitted, the AMC will perform quality assurance to verify that proper practices were followed throughout the process and that the data is accurate. If they encounter issues at this stage, they may ask the appraiser for clarification or corrections.
• Once the report has met the AMC’s standards, it is sent to the lending institution.
• The AMC appraisal must be used unless the bank can prove that it is inaccurate or that there was appraiser bias. New federal regulations also prohibit the lending institution from obtaining multiple values and using the one they find most favorable.

The SVI Process

AMCs add an important layer of oversight to the appraisal process. After the 2008 housing market crash, federal laws regulating lending institutions and mortgages changed and began requiring oversight between lending institutions and appraisers. These appraisal management companies help consumers obtain unbiased reports for financing and loan servicing.

At SVI, we use a comprehensive rating system to maintain updated scores on each appraiser in SVI’s national Appraiser Partner network. The score includes criteria such as proximity, quality, turn time, capacity, case load and responsiveness.

For each report submitted a quality score is given, this creates a regularly updated aggregate quality score for each appraiser. Significant weight is placed on quality ratings when calculating the appraiser’s overall score. This directly affects the number of appraisals an individual appraiser will be offered through the SVI order matrix.

The structure of our partner grading and selection process creates a competitive environment that promotes superior quality and turn times. Through real-time quality scoring, appraisers are able to compete for orders, while those who score below minimum requirements remove themselves from the order invitation process.

We tap into our appraiser pool for a variety of applications including:

• Conventional Financing
• FHA Financing
• Loan Servicing
• Desktop Review
• Value Reconciliation
• Tie-Outs
• Retro Reviews

The Value of SVI's National Appraisal Network

ur national appraisal management network is made up of experienced licensed and/or certified professional appraisers. After they are approved as a SVI network appraiser, each of our residential appraisers is entered into our comprehensive rating system. In addition to the required experience, licenses and certifications, every appraiser’s work is constantly reviewed and scored against our appraisal management oversight criteria.

SVI AMC Services

SVI is more than just a national appraisal management company. We offer a wide range of tools and products for home valuations, from BPOs to AVMs to our own gap/hybrid product, CollateralPoint®. CollateralPoint® combines cutting edge data and analytics with the oversight of a real estate professional, delivering an unbiased price evaluation at a competitive price.

We provide a wide array of appraisal services and products, in addition to a volume of residential appraisal reports. Currently, our appraisers can deliver the following reports:

UNIFORM RESIDENTIAL APPRAISAL REPORT
FHLMC 70/FNMA 1004

INDIVIDUAL CONDOMINIUM UNIT APPRAISAL REPORT
FHLMC 465/FNMA 1073

SMALL RESIDENTIAL INCOME PROPERTY APPRAISAL REPORT
FHLMC 72/FNMA 1025

EXTERIOR-ONLY INSPECTION RESIDENTIAL APPRAISAL REPORT
FHLMC 2055/FNMA 2055

APPRAISAL UPDATE / COMPLETION REPORT
FHLMC 442 MARCH 2005/FNMA 1004D MARCH 2005

ONE-UNIT RESIDENTIAL APPRAISAL FIELD REVIEW REPORT
FHLMC 1032/FNMA 2000

TWO-TO FOUR-UNIT RESIDENTIAL APPRAISAL FIELD REVIEW REPORT
FHLMC 1072/FNMA 2000A

SINGLE FAMILY COMPARABLE RENT SCHEDULE
FHLMC 1000/FNMA 1007

OPERATING INCOME STATEMENT
FHLMC 998/FNMA 216