QUESTION
If a lender utilizes an Appraisal Management Company (AMC) for the
selection of an appraiser, is the lender still responsible for ensuring the
appraiser holds an active state license or certification?
ANSWER
Yes. Lenders must ensure the state license or certification is
active as of the date of the appraisal. The alignment with an AMC does not
absolve the lender of the responsibility of ensuring that the AMC, a vendor and
service provider, is operating within the confines of the lender’s vendor management policies.
Whether you instruct the processors and underwriters to check the
status of the appraisers on a loan level basis or you institute a master list
of appraisers with their respective license or certification expiration dates,
this re-certification is required.
The lender should review the AMC annually, the requirements for
which would be in the vendor management policy. More information about vendor
compliance is available at our affiliate website, Vendors Compliance Group.
Brandy George
Director/Underwriting
Operations Compliance
Executive
Director/LCG Quality Control
