Today’s Word of the Day is AMC. It’s not really a word, but AMC. What is an AMC when a consumer is purchasing a home? Their lending institution will require an appraisal of the home in order to obtain an updated value of the property to be mortgaged. Many lending institutions use an appraisal management company, AMC, to manage this appraisal process.
Ok, so the AMC is the lender orders the appraisal through the AMC. The AMC finds an appraiser to do it, manages it, reviews it, sends it back to the lender for them to then determine, you know, if they’re comfortable moving forward with the loan. So not all lenders use an AMC. Some banks will not.
But they have to really be careful that they can prove that this is a very accurate process that they have and there’s no bias going on there. And this came back, you know, years ago when we had the financial crunch that these AMCs, Kate, you know, were required to handle this process to avoid anything shady going on with the lender.
So so this is where the you know, if we’re seeing delays right now, we’re seeing from this standpoint, because I don’t want to throw him under the bus, but some of them just do not pay well. And therefore, an appraiser who’s doing this hard work and running around and and measuring and getting this done by a tight deadline, you know, may pass. Because they’re not getting paid enough, so. All right. AMC.