Skip to main content

Human vs. Automated Appraisal Management Services

As technology advances, artificial intelligence and automation are playing an increasingly larger role in a variety of industries. One such sector is appraisal management, an industry that facilitates real estate valuation by providing services such as selecting an appraiser for mortgage lenders and delivering the appraisal report to them. Doing so helps facilitate an efficient appraisal process and provides a legally required separation between the lender and the appraiser.

One important service appraisal management companies, or AMCs, provide is the review of reports submitted by appraisers. AMCs have review departments that play a quality control role in the management process. These departments:

Outsourcing Appraisal Management: The Benefits for Banks

The appraisal process has never been more stringent — and for good reasons.

Leading up to the 2008 recession and housing market crash, more than half of appraisers cited experiences where they felt pressured from another party — a lender, a borrower or a real estate agent — to inflate their valuation of a home. In 2007 alone, that number was at an all-time high: nearly 90 percent of appraisers felt high or above-market valuations were demanded of them. Many of us know how that story ended.

How to Pick the Right Appraisal Management Company (AMC) for Your Needs

Remaining in compliance is hardly the sole reason to sweat picking the right appraisal management company (AMC).

When appropriately selected, these businesses go above and beyond to save your bank or lending institution valuable time, money and better-suited resources — all while obtaining the most qualified, comprehensive and unbiased property appraisals possible.

However, how to choose an AMC has become a somewhat convoluted process. In recent years, the leap in lending regulations and stricter attention placed on mortgage practices has rendered it difficult, if not impossible, for most banks to perform compliant and effective in-house appraisals.

Key Benefits of an Appraisal Review

When you stop to think about the benefits, an appraisal review is truly worth its weight in gold. The main objective of ensuring accuracy in the estimation of a property's value is a no-brainer for community banks and credit unions alike. A comprehensive appraisal review locks down a clear assessment of the property, going over every detail to protect the financial institution's investment. A real estate appraisal report's accuracy is just one key benefit, though, and appraisal reviews offer numerous advantages to support their required usage.

10 Ways AMCs Improve Your Appraisal Management

Not too long ago, the process of appraising houses was a bit like the Wild West. In the years leading up to the housing crisis and recession, loan officers lenders had more of a hand in the appraisal process. In some cases, that led to lenders trying to influence appraisers to increase the perceived value of a home. In 2007, 90 percent of appraisers reported feeling pressure from someone — such as a lender, borrower or real estate agent — to inflate the appraised value of a home. In 2003 that number was 55 percent and I would like to know the current percentage now after more than 10 years have passed since the beginning of the housing crisis.

5 Reasons Why Relationships are So Important to the Appraisal Process

Good relationships serve as the cornerstone in just about every line of business. Tasks become easier and company goals are more attainable when everyone works together. A company's plans run more smoothly with respect, honesty, and consideration at the helm of the partnership. As with any industry, the success of the appraisal process depends on a solid relationship between the appraiser, the appraisal management company, and the bank or credit union.

At SAMCO, we strive to ensure our relationships with appraisers and financial institutions are second to none. Here are a few of the key reasons why we believe good relationships are so vital in our line of work.

Leprechauns Wore Red: Little-Known Facts About St. Patrick's Day

St. Patrick's Day has been a popular holiday for hundreds of years, but many aspects of it remain shrouded in mist as thick as pea soup. From leprechauns to shamrocks and shillelaghs, there's more to the symbols of St. Patrick's Day than meets the eye. Here's your chance to impress your friends with your knowledge of St. Patrick's Day's most colorful symbols and traditions.

Why do appraisers choose to work with SAMCO ?

SAMCO works with an extremely talented group of appraisers in multiple states. The appraisers that we work with have an exceptional skill set for their markets. Our clients (Community Banks & Credit Unions) offer services in some pretty unique areas. From a farm in the Midwest to the Upper Peninsula of Michigan (SNOW Country). Our appraisers know their markets.

5 Tips for Checking if Your AMC Fee is Accurate

If you are a mortgage lender, appraisal management fees are a necessary part of your business. Before you choose an appraisal management company, you want to make sure you are getting a fair price. It's important to know how to tell if an AMC fee is accurate. What is an average AMC fee? How much do AMCs typically charge? Here are five ways to tell if an appraisal management fee is accurate.

How to Check the Accuracy of an Appraisal Management Fee

1. View the Reports

Even if you have an idea of how to check the accuracy of an AMC fee, you cannot do it unless you are getting regular reports. You should be receiving monthly or quarterly reports on all fees your AMC is generating. Make sure to read them carefully when they arrive.

Should an Appraiser Use Foreclosures and REO Sales as Comps?

In the wake of the 2008 financial crisis, home sale activity plunged and foreclosures increased dramatically. As a result, the pool of recent sales appraisers could use as comparable sales shrank. At the same time, REO sales (“Real Estate Owned” by banks) became an increasing percentage of sales. In many cases, appraisers used REO sales in their appraisals – with complaints subsequently levied by brokers and buyers who argued that the use of REO sales resulted in appraisals that understated market value. So what exactly is an appraiser supposed to do in such a situation and is the use of foreclosure or REO sales acceptable practice?