Wednesday, April 1, 2009

Another View of AMC Regulation

UPDATE!! April 3, 2009
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It looks like I spend WAAAAY too much time scouring the web and sources for information about the HVCC, Appraiser Regulation, Appraisal Standards, Mortgage Fraud and Appraisal Management Companies. There's quite a bit of information available, and I happened to run across a post on the TAVMA Blog.

TAVMA calls itself the voice of the settlement services industry. TAVMA is a 501(c)(6) non-profit trade association headquartered in Pittsburgh, PA that represents nearly 100 companies engaged in the real estate settlement services industry.

At any rate, TAVMA is concerned about the efforts to regulate Appraisal Management Companies. Here is the post from the blog:

Why State Regulation of AMCs Will Put Small AMCs Out of Business
Finally, someone in media has reported what I've been trying to get across for the past month: That state registration and regulation of appraisal management companies (AMCs) will assure the survival of only the largest of the large AMCs.

Unintended Consequences

In a story, about a proposed AMC bill in Missouri in today's Valuation Review, I am quoted (correctly) as saying that, “'… (T)his new legislation will have unintended consequences. Small or in-state AMCs won’t be able to afford the initiation fee. The state is essentially forcing small or local AMCs out of business. They’re taking jobs out of the state and putting them in other states with the large, national management companies.'”


My response is posted in the comments. Feel free to provide your point of view here.

UPDATE - April 3, 2009

It looks like several folks have surfed over to the TAVMA Blog to add their comments. Blog owner, Jeff Shurman has responded to my comments and several others. He has also promised to post a new entry in response to some of the issues raised. Use this LINK to access those comments when posted.