LRES, a national appraisal management and REO management company offering property valuations, asset management and technology solutions for mortgage bankers, lenders, servicers, credit unions and private investors, announced that it has made its “Best Business Practices for an Appraisal Management Company” handbook available for appraisal management companies (AMCs).
This document outlines the key principles and characteristics of an effective appraisal management company. In the handbook, LRES focuses on best practices and assessment procedures to evaluate an AMC’s progress in implementing these best practices.
LRES upholds nine essential best practices as an industry standard, and defines and elaborates on the correct method to achieve these best practices.
LRES’s nine best practices include:
- Apply for and maintain current license(s) as required to conduct the business of an AMC;
- Adopt and maintain appropriate written procedures and controls for an AMC;
- Establish a mandatory training program, utilizing both internal and external resources, required to be completed by all employees of the AMC;
- Maintain a written policy regarding privacy and information security to protect non-public personal information as required by local, state and federal law;
- Adopt standards that ensure compliance with regulations issued by the Consumer Financial Protection Bureau (CFPB);
- Maintain appropriate professional liability insurance and fidelity coverage;
- Maintain written procedures for resolving client/consumer complaints;
- Establish and maintain a due diligence process whereby all third-party vendors of the AMC are evaluated and reviewed not less than annually; and
- Engage a vendor panel management process.
“Following this list of best practices has positioned LRES for growth, which has led to the successful acquisition of Lenders Choice,” LRES founder and CEO Roger Beane said. “This list can serve as a resource to other appraisal management companies looking to achieve growth and better serve their clients.”
“Best Business Practices for an Appraisal Management Company” is available on LRES’s website.