May an appraisal management company affiliated with, or that owns or is owned in whole or in part by the lender or a lender-affiliate, order appraisals?
Yes, an appraisal management company affiliated with, or that owns or is owned in whole or in part by the lender or a lender-affiliate, may order appraisals if the appraisal management company meets the criteria of Section IV.B. of the Code. Q27. When a lender uses an appraisal management company, the appraisal management company is responsible for retaining and paying the appraiser. Is it likewise permissible for a mortgage broker to use an appraisal management company, since the mortgage broker does not technically retain or pay the appraiser? No. The Code prohibits lenders from relying on an appraisal where the broker had a role in selecting, retaining, or compensating the appraiser. Q28.
Related Questions
- May a mortgage broker order an appraisal directly from an appraisal management company that was specifically authorized by the lender?
- Can a broker initiate an appraisal request through a lender’s designated appraisal management company (AMC)?
- Is a lender required to use an appraisal management company for ordering appraisals?
