Unencumbered by the thought process!

The Home Valuation Code of Conduct will become effective May 1, 2009!

I believe this is the death-nail for independent fee-appraisers and will force all lenders to use an appraisal management company (AMC) to order appraisals.

While using an AMC may look like a solution to the Government... it's really just eliminating quality appraisers from the market. Let me explain in this example:

An AMC operates by taking a large percent of the appraisal fee to operate their business. Let's say that a bank "Bells Cargo" needs to order an appraisal - they contact the AMC they own to order the appraisal. The AMC they own will find the lowest priced appraiser who will work under their terms.

Using the tried and true concept of "You get what you pay for"... who would be the lowest bidding appraiser????

The problem will be reflected in the quality of the remaining appraisers.