LRES Outlines Best Practices For AMCs

Posted by Patrick Barnard on April 08, 2015 No Comments
Categories : Residential Mortgage

LRES, a national appraisal management and REO management company offering property valuations, asset management and technology solutions, has introduced a new handbook titled ‘Best Business Practices for an Appraisal Management Company.’

The company hopes that this handbook – which outlines the key principles and characteristics of an effective appraisal management company (AMC) – will become a standard for the industry.

The new handbook also offers assessment procedures that can be used to evaluate an AMC's progress in implementing the suggested best practices.

The nine essential best practices that LRES covers in the handbook are as follows:

  • Apply for and maintain current license(s) as required to conduct the business of an AMC;
  • Adopt and maintain appropriate written procedures and controls for an AMC;
  • Establish a mandatory training program, utilizing both internal and external resources, that must be completed by all employees of the AMC;
  • Maintain a written policy regarding privacy and information security to protect non-public personal information as required by local, state and federal law;
  • Adopt standards that ensure compliance with regulations issued by the Consumer Financial Protection Bureau;
  • Maintain appropriate professional liability insurance and fidelity coverage;
  • Maintain written procedures for resolving client/consumer complaints;
  • Establish and maintain a due diligence process whereby all third-party vendors of the AMC are evaluated and reviewed annually at a minimum; and
  • Engage a vendor panel management process.

‘Following this list of best practices has positioned LRES for growth, which has led to the successful acquisition of Lenders Choice,’ says Roger Beane, founder and CEO of LRES, in a release. ‘This list can serve as a resource to other appraisal management companies looking to achieve growth and better serve their clients.’

To download the handbook, click here.

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