Can appraisal management companies (AMCs) help appraisers? The Fort Worth, Texas-based property valuation management firm ""Axios Valuation Solutions"":http://www.myaxios.com says, ""The answer may surprise you, and it's a resounding yes.""[IMAGE]
According to Axios, a good AMC supports appraisers in many areas, including obtaining greater work flow stability near the appraiser's office or area of geographic competence, as well as reducing drive times to allow appraisers to focus their time and efforts on local appraisals and a level of quality control (QC) review that otherwise is lacking from most independent appraisers.
In addition, Axios says appraisers that consistently perform quality appraisals can expect a steady work flow from an AMC. A good AMC will also provide appraisers with reviewer's comments meant to educate and elevate the field appraiser's knowledge, as well as a steady platform through which the appraiser can communicate with the AMC to discuss issues without any lender pressure, the company explained.
Each of these aspects is ""good for the appraiser and for the profession,"" Axios says.
On the lender and investor side of the equation, Axios explained that a good AMC is one that provides a solid QC process that can identify poorly written appraisals, stop misleading reports from reaching clients, and supports the Uniform Standards of Professional Appraisal Practice's (USPAP) mandate to promote and maintain a high level of public trust.
""Independent AMCs generally provide a higher level of QC checks, sort of a second pair of eyes for the appraiser."" Axios said. ""Ultimately this helps the lender, the investors, and the country's economy.""[COLUMN_BREAK]
Even with these guiding principles, Axios says good appraisals are simply hard to come by these days. Many will argue that it is because of increased turn time demands on appraisers or lower appraisal fees, the valuation company explained.
""While these may certainly be a factor characterized by many of the big AMCs, the fact is that even without AMCs or the HVCC [Home Valuation Code of Conduct], there would be a plethora of bad appraisals,"" Axios said.
Axios provided a list of some of the most basic errors found in appraisal reports:
* misleading or inadequate market trends comments
* lack of support for sales adjustments
* wrong photos or reliance on MLS photos
* missing addenda, sketches, or other components
* failure to understand the analysis of the 1004MC and how it pertains to the neighborhood and comparable sales sections of the appraisal report
* lack of geographic competence
According to the experts at Axios, the last item on that list is the number one issue soiling appraisal reports. Without good geographic competence of the market area, Axios says an appraiser is ""like a ship lost at sea.""
""Appraisers simply should not accept appraisal assignments where they do not have geographic competence or the resources to complete a credible report,"" Axios stressed.
A good AMC can provide and monitor better dispersal of appraisal orders to ensure that the most local appraisers are used, also taking into account other appraiser criteria such as licensure levels, years of experience, and prior work quality.
So can a good AMC help appraisers? Axios's answer is an emphatic ""Absolutely!""
""AMCs will continue to provide an invaluable service to America's mortgage lending industry as a buffer against lender pressure to appraisers, a partner in the appraiser's quality control process that will promote higher quality appraisals, and as a resource for greater work opportunities,"" Axios said.
""Axios Valuation Solutions"":http://www.myaxios.com was created by appraisers and industry leaders to bring a new way of managing the appraisal order process. The company says its philosophy is simple: provide a superior quality appraisal report by working with experienced independent appraisers and compensating them with some of the highest fees of any management company.