Buzz: Thank you for taking the time to speak with us about your upcoming webinar AMC Final Rules and the Impact on Appraisers. Can you tell our readers a little bit about your history in the industry?
Alan: I’m proud to be the son of an appraiser! I started when I was knee-high to dad holding the “dumb-end” of the tape measure. Appraising is the only “real” job I’ve ever had since graduating from college some 30+ years ago. As SVP and chief appraiser at Forsythe Appraisals, LLC I help both our clients and our 250+ w-2 employee staff appraisers navigate the numerous rules, regulations and policies that are in place to protect the public and make certain appraisals are completed in a credible manner. I continue to enjoy participating on Boards of industry organizations as well as speaking and teaching on appraisal standards and methodologies.
Buzz: Why should appraisers be concerned with the release of the AMC Final Rules?
Alan: AMCs are utilized as service providers to lenders in almost 70% of all mortgage transactions. As an appraiser, it is important to know what regulatory requirements (and sometimes restrictions) your clients have to abide by so that you don’t inadvertently become implicated if someone else is not following the rules. We’ll also discuss the types of transactions that fall under the Rules – spoiler alert, the Rule does not cover all appraisals.
Buzz: What are some of the topics you will cover in this webinar that will assist appraisers?
Alan: A big one is the regulatory differentiation between AMCs and Appraisal Firms and which entities are covered by the rules. Equally as important are the definitions around independent contractors and how the use of them may impact an entities classification as an AMC, and how AMC panels are defined.
Buzz: What happens if a state elects not to establish minimum AMC requirements?
Alan: This will be discussed in some depth during the webinar – but the short story is, it is doubtful appraisals or commerce will stop in a state that does not have a program that meets the minimum requirements.
Buzz: When working with AMCs, how should appraisers decide whom to do business with?
Alan: All client engagements are a business decision. Not all AMCs have the same model, thus interaction with them can greatly differ from the appraiser’s standpoint. With that said, working with an entity that is not in compliance with applicable rules and regulations is likely a time bomb that I would suggest everyone shy away from.
Buzz: When is the deadline for States to establish AMCs minimum requirements?
Alan: From the Federal Rule perspective, in order to provide specific and defined appraisal services States will be until August of 2018 to establish the minimum requirements, though an extension of up to 12 months beyond that date may be granted under certain circumstances.
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