Lenders, brokers and consumers are not ALLOWED to contact and hire their own qualified appraiser. Everyone who wants an appraisal for their property (or property they like to purchase) must use an Appraisal Management Company who charges a fee for sending out the appraisal order/bid – hoping to find the cheapest appraiser in the area. The Appraisal Management Company (AMC) collects the full fee for their services from the consumer and pays the least amount possible to the actually licensed appraiser, as part of the bid process.
NY Attorney General Andrew Cuomo fought hard for this law which is known as Home Valuation Code of Conduct (HVCC). However, those in the appraisal industry have a different view.