Appraiser Selection and Management

May 12, 2017

Question: If a lender utilizes an Appraisal Management Company (AMC) for the selection of an appraiser, is the lender still responsible for ensuring the appraiser holds an active state license or certification?

Answer
Yes. Lenders must ensure the state license or certification is active as of the date of the appraisal. The alignment with an AMC does not absolve the lender of the responsibility of ensuring that the AMC, a vendor and service provider, is operating within the confines of the lender’s vendor management policies.

Whether you instruct the processors and underwriters to check the status of the appraisers on a loan level basis or you institute a master list of appraisers with their respective license or certification expiration dates, this re-certification is required.

The lender should review the AMC annually, the requirements for which would be in the vendor management policy. More information about vendor compliance is available at our affiliate Web site, Vendors Compliance Group.

Brandy George is director of Underwriting Operations Compliance and executive director of LCG Quality Control.

About the author

Brandy George

Link copied

Published

May 12, 2017

Analysis and Data

Homeownership Slips Further Away For Californians

Only 18% of Californians could afford a median-priced home in 2024, with affordability gaps persisting across ethnic groups

Buying a home in California became even harder across all ethnic groups last year, as surging mortgage costs pushed affordability further out of reach, according to the California Association of Realtors (C.A.R.). Only 18% of Californians earned enough to purchase the sta...

Analysis and Data

Mr. Cooper Shrinks Originations But Strengthens Borrower Retention Ahead Of Rocket Merger

Loan production fell 10% in Q1, but purchase share climbed and borrower recapture hit 51% amid broader strategic realignment

Mr. Cooper Group reported first-quarter 2025 results that reflect a mixed environment for mortgage production and servicing, as the company emphasized operational stability and strategic expansion despite a slowdown in origination volume. Loan Production Mr. Cooper fun...