Property Valuation

What is an 'appraisal management company' (AMC) and its role in Delaware real estate transactions?

AA company that manages a portfolio of investment properties
BAn independent third party that manages the appraisal process on behalf of lenders — ordering appraisals, ensuring independence, and maintaining appraiser panels — required by post-2010 regulations✓ Correct
CA government agency overseeing real estate appraisers in Delaware
DA company that reviews property tax assessments for homeowners

Explanation

Appraisal Management Companies (AMCs) were established to ensure appraiser independence under the Dodd-Frank Act and Home Valuation Code of Conduct (HVCC). AMCs receive appraisal orders from lenders, assign them to qualified appraisers, review the reports, and deliver them to lenders — preventing lender pressure on appraisers.

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