An appraisal management company (AMC) is an independent third-party entity that manages the appraisal process on behalf of mortgage lenders. AMCs select and assign qualified appraisers, coordinate scheduling and communication, review completed reports for quality and compliance, and deliver appraisals to lenders—all while maintaining the separation between loan production and property valuation required by federal law.
AMCs became a standard part of the mortgage industry following the 2008 financial crisis, when the Dodd-Frank Wall Street Reform and Consumer Protection Act established appraisal independence requirements designed to prevent the inflated property valuations that contributed to the housing market collapse.
KEY FACTS: Appraisal Management Companies
• AMCs have existed since the 1960s but became widespread after the 2008 financial crisis
• Dodd-Frank Act (2010) established federal appraisal independence requirements
• AMCs must register with states where they operate (panels of 15+ appraisers in one state or 25+ nationally)
• AMCs do not perform appraisals—they manage the process and coordinate between lenders and appraisers
• All appraisals must comply with USPAP (Uniform Standards of Professional Appraisal Practice)
How Does an Appraisal Management Company Work?
When a mortgage lender needs a property appraised, the AMC handles the entire process from order to delivery. Here is the typical workflow:
1. Order Placement
The lender submits an appraisal order to the AMC with property details, loan type, and any specific requirements. Neither the loan officer, mortgage broker, nor borrower can select the appraiser—this separation is required by law.
2. Appraiser Assignment
The AMC selects an appropriately licensed and certified appraiser from its panel based on geographic competency, property type expertise, availability, and past performance. The appraiser must hold valid credentials for the state where the property is located.
3. Inspection and Valuation
The appraiser inspects the property, researches comparable sales, analyzes market conditions, and develops an opinion of value. The appraiser works independently without input from parties who have a financial interest in the transaction outcome.
4. Quality Control Review
Before delivery to the lender, the AMC reviews the completed appraisal for accuracy, completeness, and compliance with USPAP standards, agency guidelines (Fannie Mae, Freddie Mac, FHA, VA), and lender-specific requirements. Issues are addressed with the appraiser before final submission.
5. Delivery and Documentation
The AMC delivers the completed appraisal to the lender, handles UCDP (Uniform Collateral Data Portal) submission for GSE loans, collects payment, and compensates the appraiser. The AMC maintains documentation for compliance and audit purposes.
Why Do Appraisal Management Companies Exist?
AMCs exist primarily to ensure appraisal independence—the separation between parties with a financial interest in a mortgage transaction and the appraiser who determines property value.
The 2008 Financial Crisis Connection
Before widespread AMC use, lenders often worked directly with appraisers. This created opportunities for pressure—loan officers who needed deals to close could influence appraisers to “hit the number” needed for loan approval. Inflated property valuations became common, contributing to the housing bubble that collapsed in 2008.
In response, regulators implemented strict appraisal independence requirements:
- Home Valuation Code of Conduct (HVCC) in 2009 (no longer in force but influenced subsequent rules)
- Dodd-Frank Act (2010) codified appraiser independence requirements into federal law
- Interagency Appraisal Guidelines established standards for federally regulated institutions
AMCs became the primary mechanism for lenders to comply with these requirements while maintaining efficient appraisal operations.
What Services Do Appraisal Management Companies Provide?
AMCs provide a range of services that handle the administrative, operational, and compliance aspects of the appraisal process:
Appraiser Panel Management
- Recruiting, vetting, and credentialing appraisers
- Verifying licenses and certifications
- Monitoring performance and tracking quality metrics
- Ensuring geographic coverage across service areas
Order Management
- Receiving and processing appraisal orders from lenders
- Assigning orders to qualified appraisers
- Tracking status and managing timelines
- Coordinating scheduling between appraisers and property contacts
Quality Control
- Reviewing appraisals for accuracy and completeness
- Checking compliance with USPAP and agency guidelines
- Identifying and resolving issues before delivery
- Managing revision requests and reconsiderations of value
Compliance and Documentation
- Maintaining appraisal independence protocols
- Handling UCDP submission for GSE loans
- Maintaining audit-ready records
- Tracking regulatory changes and updating processes
Types of Appraisal Management Companies
Not all AMCs operate the same way. The industry includes several distinct types:
Appraiser-Owned AMCs
Founded and operated by practicing or former appraisers. These companies typically emphasize fair appraiser treatment, quality-focused review processes, and deep industry expertise. R3 AMC is an example of an appraiser-owned AMC, founded by Brent Jones, a 30-year appraisal veteran and former Fannie Mae senior analyst.
Corporate/Investor-Owned AMCs
Larger companies often owned by private equity or financial institutions. These may prioritize scale and technology but sometimes face criticism for lower appraiser fees and transactional relationships.
Lender-Owned AMCs
Some large lenders operate their own AMC subsidiaries. These are subject to federal oversight and must maintain operational separation from lending functions to preserve appraiser independence.
Regional vs. Nationwide AMCs
Some AMCs focus on specific geographic regions with deep local expertise, while nationwide AMCs provide coverage across all 50 states with consistent processes regardless of property location.
How Do Lenders Choose an Appraisal Management Company?
Lenders evaluate AMCs based on several key criteria:
- Coverage area: Does the AMC serve all geographic markets where the lender operates?
- Turnaround time: Can the AMC meet timeline requirements consistently?
- Quality metrics: What are the AMC’s UCDP acceptance rates and revision request frequencies?
- Communication: Does the AMC provide clear status updates and responsive support?
- Technology: Does the AMC offer portal access, real-time tracking, and system integration?
- Compliance infrastructure: Is the AMC properly registered and equipped to handle regulatory requirements?
- Appraiser treatment: Does the AMC maintain good appraiser relationships that support quality and availability?
“The best AMCs combine operational efficiency with genuine appraisal expertise. When leadership has done the work themselves, they build systems that support quality outcomes—not just fast turnaround. That is what lenders should look for.”
— Brent Jones, CEO and Founder, R3 AMC (30+ years as practicing appraiser, former Fannie Mae Senior Analyst)
Frequently Asked Questions About AMCs
Are lenders required to use an AMC?
No. Lenders are not legally required to use AMCs. However, they must ensure appraisal independence—meaning loan production staff cannot select, retain, or influence appraisers. Most lenders use AMCs because it is the most practical way to comply with these requirements while maintaining operational efficiency.
How much does an AMC charge?
AMC fees typically range from $25 to $150 on top of the appraiser’s fee, depending on the complexity of services provided. The total appraisal cost (appraiser fee plus AMC fee) is usually paid by the borrower as part of closing costs and typically ranges from $400 to $700 for a standard residential appraisal.
Can borrowers choose their own appraiser?
No. Under federal appraisal independence rules, borrowers cannot select the appraiser for a mortgage transaction. This prevents potential conflicts of interest where a borrower might choose an appraiser likely to provide a favorable value.
What happens if I disagree with an appraisal?
You can request a reconsideration of value (ROV) through the lender or AMC. This requires providing additional comparable sales data or identifying factual errors in the original report. The appraiser will review the new information and determine whether an adjustment is warranted. A second appraisal may also be ordered in some cases.
Do AMCs perform appraisals?
No. AMCs do not perform appraisals. They manage the administrative process of ordering, assigning, tracking, reviewing, and delivering appraisals. The actual property inspection and valuation are performed by licensed or certified appraisers who are independent contractors on the AMC’s panel.
How long does an appraisal take through an AMC?
Typical turnaround time is 5-10 business days from order to delivery, though this varies by location, property type, and market conditions. Complex properties, rural areas, or high-volume periods may require additional time. AMCs generally provide status updates throughout the process.
What is the difference between an AMC and an appraisal firm?
An appraisal firm employs appraisers directly and performs appraisals. An AMC is a management company that coordinates the appraisal process but contracts with independent appraisers rather than employing them. AMCs focus on order management, compliance, and quality control rather than performing valuations.
About R3 AMC
R3 AMC is an appraiser-owned appraisal management company founded by Brent Jones, a practicing appraiser with over 30 years of experience and a former senior analyst for Fannie Mae. Based in Henderson, Nevada, R3 AMC provides nationwide coverage across all 50 states with certified and FHA-approved appraisers. The company combines technology-driven efficiency with appraiser expertise to deliver consistent quality and compliance for mortgage lenders.
Website: www.r3amc.com
Coverage: All 50 states
Founded: 2015