AMC Links, a national appraisal management company, has launched a new correspondent program for local and regional appraisal management companies.
According to AMC, the program was designed by appraisers and is intended for companies such as banks, credit unions and lenders to adhere to compliance laws – such as those of the CFPB – and help them streamline cash-making potential.
James Isbell, national sales director for AMC Links, says this program comes at an appropriate time when "smaller appraisal management companies are feeling vulnerable with the sharp decline in overall appraisal demand."
Through the program, AMC says it partners with appraisal management companies to provide nationwide coverage in a non-exclusive correspondent role. The appraisal management company then maintains its client base in areas they choose not to complete an order, as well as those states that are cost-prohibitive for them to work in.
AMC says it pays the correspondent appraisal management company a service fee while AMC absorbs all compliance, regulatory costs, reviews and licensing in the areas and states that the local and regional appraisal management companies do not perform enough volume to offset the cost. Correspondents can potentially make more profit per assignment than by fulfilling the assignment themselves, according to AMC.
"The cost of appraisal management registration, surety bonds, appraisal review requirements, state corporate filings, registered agents, state taxes, etc., has made it too expensive for many appraisal management companies to operate in many states that are outside their normal service footprint," explains Austin Christensen, president of AMC. "They need a way to maintain their client relationships, outsource the assignments and make money in the process."