As states step up their regulation of appraisal management companies, a federal regulator is stepping up the quality of required appraisal data. One mega-lender has reportedly abandoned outside AMCs in favor of in-house services, two firms have initiated an alliance and several AMCs touted new customers.
The regulator of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency, recently announced an initiative to improve the consistency and quality of appraisal data. The jointly created Uniform Mortgage Data Program, being developed with industry input, is a long-term effort to enable improved and uniform data standards and collection processes.
"A common framework will increase efficiency for lenders while enabling the enterprises to manage risk more effectively," FHFA said. "The common data standards will provide uniformity for appraisers, mortgage lenders and servicers and other information providers in their data submissions to the enterprises."
Legislation has been passed by 18 states to regulate appraisal management companies, according to Mortgage Banking Update from Patton Boggs LLP. The number of states requiring licensing or registration of AMCs has skyrocketed from just six in April. Among the states that have passed AMC legislation are California, Florida and Washington.
Bank of America Home Loans has recently stopped using outside vendors and now manages its appraisal orders in-house, an appraisal executive told MortgageDaily.com. He noted that his own AMC firm has had to scale back and layoff half of its employees as a result -- and he was among the casualties.
In an effort to broaden its sales reach, Valuation Partners hired John Golletti as vice president, national account executive. Among Golleti's prior employers are SingleSource Property Solutions and Landsafe.
Sugarland, Texas-based Valuation Partners also reported that Dan Kennard was brought on as vice president, operations. Kennard previously worked at Great Lakes Credit Union in Toledo, Ohio, and Countrywide Home Loans.
A strategic alliance was announced in May between Valligent and Kirchmeyer & Associates/Real Info Inc., a national appraisal, database and real estate appraisal consulting company. Valligent said it provides reviews, proprietary valuations, loan pool reconciliation tie-out services and appraisal underwriting.
Lincoln Appraisal & Settlement Services announced this month that Home State Bank in Crystal Lake, Ill., has become a client. Lincoln claims its corporate appraisal quality control management process leads the industry.
In June, Lincoln said United Mortgage Corp. in Providence, R.I., came on as a new client.
Marshall & Ilsley Bank said last month that it is now using FNC Inc. to electronically distribute and receive appraisal orders. The system includes FNC's generally accepted appraisal rules compliance and risk series which automatically reviews appraisals and instantly flags any violations that might be risk indicators. It automates appraisal orders, tracking and reporting.
Forsythe Appraisals LLC and Valocity LLC were selected by U.S. Bank to provide a new collateral valuation report for U.S. Bank, a June 8 statement said. The report, developed by Bradford Technologies Inc., incorporates regression analysis performed by the appraiser to support the value conclusion. The report is a "much more reliable alternative to broker price opinions and automated valuation models."
Forsythe claims to be "the largest independent provider of residential real estate appraisals in the United States."
Valuation Partners was recently selected by NetMore America Inc. to help it comply with the Home Valuation Code of Conduct. The move followed NetMore's mixed results from its original group of AMCs.