Banks, Servicers and Lenders Should Be Barred from Having Ownership Interest in an AMC
Ownership Interest in an AMC
At the NAR midyear Legislative Meeting in DC, the question of the appraisal epidemic and the problems associated with AMCs and HVCC were discussed. David Stevens, the current President of the Mortgage Bankers Association and the immediate past commissioner of FHA, brought up the appraisers’ geographical incompetence, a violation of the Standard. The question is, ask Frank Garay & Brian Stevens, hosts of the TBWS Daily Show, why is he bringing this up now, when he is the President of MBA and cannot do anything about it. And why didn’t he voice his concerns while he was the commissioner of FHA and could have done something about this issue?
Because, by the time FHA had adopted the system derived from HVCC, the problems associated with appraisers’ geographical incompetence was already well established through the preceding months when the same policy was adopted by Fannie Mae and Freddie Mac, adds Brian.
At the same meeting, Martin Eakes, the CEO of Self Help Credit Union & CEO of the Center for Responsible Lending, suggested that banks, servicers and lenders be barred from having ownership interest in an AMC. Many of our Nations Appraisal Management Companies, small or large, are owned, co-owned or commingled with the banks and lenders.