Ever since the Home Valuation Code of Conduct was announced the market share of AMC's has been increasing. Before the HVCC (pre-2009) AMC's had a market share of approximately 20%. Not a very high number. Todays estimate of AMC's Origination Share is 60% of the total market. The HVCC originally just placed a buffer between appraisers and loan officers to prevent pressure being placed on the appraiser to inflate values and only concerned Fannie-Freddie funded loans. With the 2010 Inter Agency Appraisal and Evaluation Guidelines that were announced by the joint federal financial regulatory agencies the focus became the need for quality control with qualitative reviews. The focus on reviews was again emphasized in the Dodd-Frank Act as well as making clear with a 14 point checklist what was required in an evaluation.
Lenders are tending towards leaving much of the appraisal order management and review in AMC's hands. This way the lenders can focus on what they do best, Qualtiy Control is worth managing more closely as a key contributor to their last line of defense against loan repurchases and compliance lapses. Overall profitibility is increased by the smooth funcitoning of the origination process AND the fact that due to FIRREA, a lender cannot pass on the cost of in-house order management and review, but CAN pass on the cost of the AMC that provides that same order management and review.
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