The Home Valuation Code of Conduct and Appraisal Management Companies are making home buying more complicated and costly than it needs to be…
I read this interesting article regarding appraisals and AMCs or appraisal management companies that talked about the possibility of problems with the new way lenders & appraisers interact, or should I say not interact.
The article also discusses the Home Valuation Code of Conduct. Under these new guidelines, appraisal management companies (AMCs) will act as middlemen between mortgage companies and appraisers and hold greater influence over the entire process. Which at first sounds like a great idea considering some of the problems in the past.
But speaking from personal experience when I bought last year, my lender could not send the paperwork on to the closing attorney because they were waiting for an overdue appraisal to come in. I was under contract for a REO that had a $50 per day per diem for not closing on time.
I had a heck of a time explaining to my wife what it meant, but all she heard was more money out of our pocket due to someone else dragging along at an unprofessional pace. The lender was frustrated, I was livid and my wife was confused. Luckily, the bank got the paperwork in the nick of time and the REO’s appointed closing attorney waived the per diem for several days because they saw I was trying to get the paperwork to them.
If this system is to work, then the AMC must understand that “Time is of the Essence”.
Even with the problem it caused me, I still think it is a great idea, but it still may need some fine tuning.
What do you think?