What is an Appraisal Management Company (AMC)?

An AMC is a “middle-man” that provides appraisal duties for a lender for a fee. The lender outsources the duties such as finding an appraiser in the area, assigning the appraisal to an appraiser, following up on appointment times and expected due dates, receiving the completed appraisal, reviewing the appraisal to make sure it meets the client’s needs and quality standards then forwards the appraisal to the lender. The AMC often charges a flat fee for their service to their client or lender. Often, the AMC tries to reduce the appraiser’s fees and add on an additional $100+ charge for their service so the final appraisal cost on the HUD settlement form may include both the reduced cost of the appraisal and the appraisal management company fee.

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