PITTSBURGH, Feb. 16 /PRNewswire/ -- Title/Appraisal Vendor Management Association (TAVMA), the trade association that represents the nation's largest appraisal management companies (AMCs), said today that its members are prepared to help lenders comply with the changes in appraisal ordering announced by the Federal Housing Administration (FHA) that went into effect February 15, 2010.
The new guidelines prohibit mortgage brokers from directly ordering appraisals for FHA loans. Earlier this year, Fannie Mae and Freddie Mac implemented a similar policy as part of their Home Valuation Code of Conduct (HVCC).
"Our members, the nation's largest appraisal management companies, already have significant panels of FHA-certified appraisers," said Jeff Schurman, Executive Director of TAVMA. "There are more than 51,000 FHA-approved appraisers nationwide and our five largest members currently work with over 20,000 of these FHA-approved appraisers. They're prepared; the AMC industry is ready."
Based on the vociferous reaction to HVCC, Schurman said he expects that mortgage brokers, independent appraisers with strong business ties to brokers and realtors will again protest this change. "We expect that there will be significant push-back claiming that the rules will create bottlenecks, shift work to less-experienced appraisers and delay deals," he continued.
AMCs currently provide approximately 60 percent of all appraisals used in the mortgage industry, and TAVMA's 46 AMC members account for about 85% of this volume. More than 60,000 local appraisers currently work with AMCs.
Schurman added, "When you consider that more than 60 percent of the appraisers in the country work with AMCs, it stands to reason that AMCs will have a presence in virtually every market––including working on FHA transactions."
TAVMA, the Title/Appraisal Vendor Management Association, is a non-profit professional organization that represents more than 75 companies including 46 of the largest Appraisal Management Companies (AMCs) with combined market share of 85 percent of the AMC market. TAVMA promotes the vendor management industry and presents its members' positions to government and media, protects its members' rights to do business without unfair and anticompetitive legislation and regulations and provides useful information about issues impacting the real estate settlement services industry. For more information about the organization, visit the website at www.tavma.org.
SOURCE Title/Appraisal Vendor Management Association