I went to a great seminar last night on real estate appraisals. On May 1, 2009, Home Valuation Code of Conduct (HVCC) went into effect. This code states that the lender and the appraiser must be seperate. This means that many lenders can no longer have in-house appraisers. This brought about Appraisal Management Companies (AMC). AMC's have now become the middle man for lenders, agents, sellers and buyers.
The HVCC does prevent lenders and appraisers from acting in collusion with each other. Unfortunately, AMC companies hire appraisers that may be from other areas then the one being appraised. Appriasers give there opinion of home values based on similar home values in the area. If the appraiser does not know the surrounding area, then I feel they can not do as good of a job as local appraisers.
That's enough of my opinion. What do you think?
Friday, November 20, 2009
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