On April 30, 2015, six federal financial regulatory agencies jointly issued a final rule setting minimum standards for the registration and supervision of appraisal management companies (AMCs) in states that elect to register AMCs.
Under section 1124, the Final Rule, participating States must require that AMCs:
1. Register with, and be subject to, supervision by the State appraiser certifying and licensing agency in the State or States in which such company operates.
2. Verify that only State-certified or State-licensed appraisers are used for federally related transactions.
3. Require that appraisals comply with the Uniform Standards of Professional Appraisal Practice (USPAP).
4. Require that appraisals are conducted in accordance with the statutory appraisal independence standards under the Truth in Lending Act (TILA) (15 U.S.C. 1639e) and implementing regulations.
Section 1124 (e) further requires the Agencies to promulgate regulations for the reporting of the activities of appraisal management companies to the ASC in determining the payment of the annual fee for the AMC National Registry.
Valuation Management Group (VMG) is at the forefront of appraisal regulatory guidance. Already registered in 31 states, VMG also has applications pending with the six other states currently requiring registration. VMG is poised to add new states as the state laws are finalized and implemented. According to COO Patrick McMillen, “VMG has had robust policies and procedures in place to assure the fundamental tenets of appraiser independence, objectivity, impartiality, competency, and security since the company started in 2006. VMG maintains a sound appraisal and quality assurance program, a vigorous vendor management program, and a compliance and internal audit department to assure the commitment to appraisal compliance and effective internal controls.”
Confident of our regulatory compliance, appraiser independence, and robust compliance appraisal reviews, VMG is ready for the implementation of the Final Rule, and stands firmly behind any industry oversight that provides assurances of quality appraisals for consumers, lenders, appraisers, and regulatory agencies.
Valuation Management Group is a national appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary. VMG welcomes your call to discuss our national appraisal management services.