Property Valuation
What is an 'appraisal management company' (AMC) and why was it required after the 2008 financial crisis?
AAn Illinois state agency that oversees all residential appraisals
BAn independent company that manages appraiser assignments to ensure independence between lenders and appraisers, required by Dodd-Frank✓ Correct
CA company that manages portfolios of real estate owned by banks
DAn IDFPR-licensed entity that sets appraisal fees in Illinois
Explanation
AMCs were required by the Dodd-Frank Act (post-2008 financial crisis reforms) to create a firewall between lenders and appraisers. Before AMCs, lenders could directly select and pressure appraisers.
Related Illinois Property Valuation Questions
- A competitive market analysis (CMA) is typically prepared by a:
- In a buyer's market, an appraiser would expect to see:
- When an appraiser determines a value 'as if complete' for a property under construction, they are providing what type of appraisal?
- In the sales comparison approach, an appraiser makes adjustments to comparable sales to account for differences between the comparable and the subject property. If a comparable has a feature the subject lacks, the appraiser should:
- Functional obsolescence differs from physical deterioration in that functional obsolescence is caused by:
- When performing a comparative market analysis (CMA), a real estate agent is providing:
- When appraising a newly constructed building with no prior sales history, the appraiser would most heavily rely on the:
- Economic (external) obsolescence is best described as a loss in value due to:
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