Appraisal Management Company (AMC)
A third-party company that manages the appraisal process on behalf of lenders, handling appraiser selection, order assignment, quality review, and delivery. AMCs were mandated by Dodd-Frank to ensure appraiser independence.
AMCs serve as an intermediary between lenders and appraisers to maintain independence and prevent improper influence on the appraisal process. They receive appraisal orders from lenders, assign them to qualified local appraisers, perform quality control reviews, and deliver completed reports. AMCs must be registered in each state where they operate and comply with the Dodd-Frank Act's appraiser independence requirements. While AMCs have improved independence, they have been controversial in the appraisal industry due to their impact on appraiser fees and the commoditization of appraisal services.
Related Terms
Appraiser Independence
The legal requirement that appraisers must be free from improper influence, coercion, or pressure from parties with a financial interest in the transaction outcome.
Dodd-Frank Act (Appraisal Provisions)
The 2010 federal financial reform law that included significant appraisal provisions: appraiser independence requirements, AMC registration, customary and reasonable fee mandates, and prohibition of BPOs for origination..
Fannie Mae (Federal National Mortgage Association)
FNMAA government-sponsored enterprise (GSE) that purchases and securitizes residential mortgages, setting appraisal standards and form requirements that apply to the majority of conventional mortgage loans in the United States..
Customary and Reasonable Fees
The Dodd-Frank requirement that appraisers must be paid fees that are customary and reasonable for the market area and property type, regardless of whether they are engaged directly by a lender or through an AMC..
More in UAD & GSE Standards
View allUniform Appraisal Dataset (UAD)
UADA standardized data specification developed by Fannie Mae and Freddie Mac that defines how appraisal data fields must be completed, ensuring consistency and enabling automated analysis of appraisal reports..
UAD Condition Ratings (C1–C6)
A standardized six-level scale for rating the physical condition of a property's improvements, ranging from C1 (new or recently constructed) to C6 (in need of substantial repairs and rehabilitation)..
UAD Quality Ratings (Q1–Q6)
Q1-Q6A standardized six-level scale for rating the quality of a property's construction, ranging from Q1 (highest quality, custom-built luxury) to Q6 (basic or substandard quality construction)..
Uniform Collateral Data Portal (UCDP)
UCDPA web-based portal operated by Fannie Mae and Freddie Mac where appraisal reports are electronically submitted and checked for UAD compliance, data quality, and potential red flags before delivery to lenders..