Do You Have Questions about AMC Rules?

The Final AMC rules have finally been published. There are a lot of questions still surrounding them. Who will be in charge of the enforcement? Where do the state boards come into the picture? What will the new rules mean for AMC panels. How will this affect AMC compliance procedures? We sat down with Lisa McFadden the Senior Compliance Officer at Stewart Lender Services to help clear up some of the confusion surrounding the subject.

Buzz: Lisa, Thank you for taking the time to discuss this topic with us. Before we dive in, can you tell our readers a little bit about your background in the industry?

Lisa: I am currently the Senior Compliance Officer for Stewart Lender Services, Inc. I am a licensed attorney and my primary focus is regulatory compliance. I provide compliance strategies and direction for our business lines that support the residential lending industry, including our Appraisal Management Company.

I was first introduced to the appraisal industry in the early 1990s. My father was an appraiser and I was his assistant for several years.

Buzz: Why has the topic of AMC regulations and rules been such a hard one to get a clear picture of?

Lisa: The AMC regulations and rules are difficult to manage because of the wide variances among the states, the lack of clear standards, terms and definitions and a disconnect between the language of the rules and regulations and the Boards that are responsible for oversight.

Buzz: You have a live webinar coming up Wednesday May, 13^th on thinkregs.com to discuss AMC compliance, what audience is this webinar intended for?

Lisa: I think the webinar is perfect for anyone responsible for AMC Compliance, including compliance managers, lenders and auditors.

Buzz: What can the audience take away from this webinar that will assist them in their profession?

Lisa: I hope that the audience gains an understanding of the breadth and scope of the State requirements for AMCs. The path to compliance requires the development of a plan to review and implement each state’s requirements.

Buzz: How many states currently provide licensing or registration of AMCs? How do you see this number changing in the future?

Lisa: Right now 38 states have licensing or registration requirements, but, Now that the federal rules are completed, it is likely that all states and jurisdictions will implement some form of licensing or registration.

Buzz: Why do think the states vary so drastically in their requirements from AMCs?

Lisa: Some of the variation is due to the regulatory environment in each state. Some states have to adhere to certain administrative requirements to align with other agencies within the state. Other variations may be attributable to a state’s desire to apply more rigid oversight to AMCs.

Buzz: Are there any unique state requirements that AMCs must follow?

Lisa: Yes. For example, Utah requires the AMC staff assigning or reviewing orders to provide satisfactory proof of USPAP training and certification. Documentation supporting this certification must be provided to the state at the time of application and upon renewal.

Buzz: Can you identify one best practice that can help streamline compliance efforts for AMCs to satisfy state requirements?

Lisa: Develop an internal method for tracking legislative and regulatory activity and stay abreast of Board activity.

Buzz: We appreciate you taking the time to talk with us on this. I know there are many people out there in the industry searching for help with this. We look forward to hearing more about it during your live webinar on Wednesday, May 13^th, 2015 at 2pm (Eastern).

Lisa: Thank you, the webinar should last about an hour and we will open it up to attendees to ask any questions they may still have in a live Q&A session at the conclusion of the webinar.

CLICK HERE For additional information or to sign up for this live webinar.