Some people that appraisal companies are useless, but there's a vital reason why they were created. The Youtube video "Why are Appraisal Management Companies Needed?" shows why these places are needed and how they contribute to the economy. Let's find out more!
Appraisal management companies, or AMCs, are agencies that have independent appraisers in one place, and their purpose is to ensure that appraisals are being done according to the rules. These employees follow certain set standards.
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One of the reasons why these companies are needed has to do with the 2008 economic collapse.
In the early 1990s, loan officers could just hire any independent appraiser, who normally worked under commission, so their numbers might have been different depending on who you hired and what their interests were. That and other factors led to the market crash of 2008. However, now AMCs handle all appraising needs. They assign appraisers who can be trusted, and check the reports of quality control before they can be sent out to the loaner. Essentially, these companies ensure that there's no corruption because some appraisers could have a financial interest in the loan too.
You can watch the rest of the video for more information about appraisal companies.
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