RESPA was intended to ensure prospective consumers are provided with full disclosure of settlement costs and are given the opportunity to comparison shop. Under RESPA, the loan originator is required to provide the consumer with a Good Faith Estimate (“GFE”) within three days of receiving the consumer’s application for a loan.
What is an Appraisal Management Company (AMC)?
An appraisal management company (AMC) provides an appraisal from an independent appraiser that strictly follows all USPAP (Uniform Standards of Professional Appraisals Practices) guidelines. In order to provide an appraisal, an AMC maintains a pool of qualified appraisers. Appraisals must be ordered through an AMC that complies with the Home Valuation Code of Conduct (HVCC) requirements. Any appraisals ordered directly by the Broker Partner will not be accepted and will require a new appraisal ordered through an AMC.