HVCC: Lenders Creating Their Own AMC’s
It’s no secret that mortgage brokers, banks, net branches and anyone else in mortgage lending is struggling with the negative consequences and repercussions that affect borrowers and lenders as a consequence of HVCC or the Home Valuation Code of Conduct.
One way lenders are countering the lack of control and negative outcomes due to poorly handled appraisals by the AMC’s (Appraisal Management Companies) that lenders are forced to work with is by becoming AMC’s themselves. You heard me right, lenders are now starting their own AMC’s. This will give them more control over the process and help alleviate some of the bigger issues being created by HVCC.
Common HVCC Issue Lenders are Trying to Counter:
“Because AMCs operate nationally but do not have appraisers everywhere, more appraisals are being done by appraisers who are not familiar with the local market. Appraisers working for AMCs are also paid less per appraisal than independents, which may induce them to invest less time.
Less knowledge by appraisers means more scope for bias, and in a declining-price market, the prevailing bias is toward lower values.