I think AMC's should be required to select qualified appraisers with experience in the local market. There should be a tiered pay schedule based on license level, local market characteristics and complexity of the subject property.
Getting on an AMC list should involved more than sending in license, w-9, and E&O sheet. World Savings/Wachovia has a really neat method of getting appraisers "on the list" which involves a series of applications and required documents. After getting through the "pre-screening" process there is a required 2 to 3 hour orientation meeting in the local area they are recruiting in which includes the entire batch of appraisers under consideration. It's almost like a mini-CE course and there are class handouts.
The AMC could use this process to ensure only highly motivated, competenent and experienced appraisers get on the panel. There should be annual or semi-annual requirements to remain on the list such as online seminars for additional training and updating. There should also be local peer review by senior appraiser's within the local market designated (and compensated) for that funtion.
Pay the appraisers a market based fee for their good work, less a reasonable and consistent discount for their benefit to the appraiser in managing clients and collections (not based on ground down AMC fees) Reward consistently good work, good customer service and response times with intangible items like official "attaboys" or other recognition (which can be used by the appraiser in a more tangible manner in marketing their services with good references) and perhaps some tangle benefits such as year end bonuses, increased number of assignments or reduction in fee discounts.
Sanction poor performance, poor work, and poor customer service at increasingly severe levels until removal from the panel is necessary. Make sure an open, understandable, correctable and fair process is part of the program.
It may cost more for each appraisal this way but it's the borrowr who pays and this can (and has been) passed on to them anyway. I don't think borrowers really care that much. An extra $200 on the appraisal fee is only about $1.40 per month.
I think most lenders would be very interested in an AMC that went to great lengths to make sure that the best appraiser gets matched up with each and every property they are considering making a loan on.
