Can I use an appraisal management company (AMC) for my FHA appraisal?

The Mortgagee may engage an Appraisal Management Company (AMC) to perform services related to obtaining an appraisal. The Mortgagee remains responsible for the acts of its AMC or third-party contractors.  The Mortgagee may not pay the AMC and other third-party contractors fees in excess of what is customary and reasonable for such services in the market area where the property being appraised is located. Any management fees must be for actual services related to the ordering process, or review of appraisal for FHA financing. 

For additional information see Handbook 4000.1 II.A.1.a.iii(B)(6)(c) at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04335