Careful Selection of an Appraisal Management Company Partner
Can Help Lenders with Regulatory Compliance
BY MICHAEL DRESDEN, PRESIDENT, DART APPRAISAL
This article originally appeared in Mortgage Compliance
Magazine, July 2016
The home appraisal is a key process and document in loan
origination and mortgage lending. In the conduct of that
assignment, the appraisal management companies that work with
lenders are subject to Federal rule making subsequent to the
Dodd-Frank Wall Street Reform and Consumer Protection Act (HR 4173)
of 2010, as well as a system of state registration and
Moreover, as the Consumer Financial Protection Bureau (CFPB) has
said, "supervised banks and nonbanks are expected to oversee their
business relationships with service providers in a manner that
ensures compliance with Federal consumer protection law," which
means that these entities must have an effective process for
managing the risks of service provider relationships.
Even though we are now several years removed from the most
recent financial crisis, regulatory surveillance and enforcement
Thus, in today's regulatory environment, appraisal management
company (AMC) partners play an increasingly important role in
overall regulatory compliance, especially as lenders of all sizes
consider the benefits of outsourcing appraisal management.
Read the full article here.