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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle


Appraisal Management Company (AMC): What it is in Real Estate

Photo: Appraisal Management Company Photo: Appraisal Management Company

An AMC is a company that manages appraisals.

Mortgage lenders might obtain residential real estate assessment services for properties on which they are considering granting homeowners loans from an appraisal management company (AMC), an independent organization. AMCs provide administrative tasks related to the appraisal process, such as choosing the appraiser and giving the lender the appraisal report. Individual appraisers who work for AMCs offer the real property valuation services.

Appraisal Management Companies (AMC): An Understanding

For the past 50 years, AMCs have been a real estate market feature. However, they were few until the 2007–2008 financial crisis. The Home Valuation Code of Conduct (HVCC) assessment standards were developed in 2009 by the Federal Housing Finance Agency (FHFA), Freddie Mac, and Fannie Mae, three government-sponsored corporations.

The appraiser independence featured in the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Truth in Lending Act was established by the HVCC rules, which are no longer in effect. The usage and availability of AMCs increased dramatically due to laws requiring lenders to utilize independent appraisers. Lenders were only allowed a certain amount of direct interaction with appraisers, which the HVCC restricted and, subsequently, federal law. In essence, the federal government’s demand for appraiser independence was to stop lenders from persuading them to inflate property values. This situation is said to have led to the housing crisis.

When using an AMC, the appraiser for the property on which they wish to lend/borrow money cannot be chosen by mortgage brokers, loan officers, or homeowners. Due to their financial stake in the sale, the former parties run the danger of trying to persuade the appraiser to place a greater value on the property than the market would bear to facilitate the deal.

Requirements for Appraisal Management Companies (AMCs)

To satisfy demands from lending institutions, AMCs have a pool of appraisers who are either state-licensed or state-qualified. The property will receive an appraisal report from an appraiser who has been given the job.

AMC appraisers are not given access to the property’s historical information or placed in touch with the loan institution. The appraiser’s evaluation must adhere to the USPAP standards (Uniform Standards of Professional Appraisal Practice). The AMC can legally assist if there are any problems.


  • An independent real estate assessment firm known as a lender employs an assessment Management Company (AMC) to do values on possible mortgaged properties.
  • AMCs choose appraisers certified or licensed by the state to evaluate properties and submit appraisal reports to lenders.
  • Lenders, mortgage brokers, and customers looking for a mortgage on a potential property are not allowed to pick the appraiser.
  • The United States government created criteria for appraiser independence, which limit the influence lenders may have on appraisers.

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