Class Valuation, one of the largest appraisal management companies in the U.S., has acquired yet another firm. It’s picked up PropertyVal, a Maine-based AMC that is among the largest independent residential appraisal firms in the state.
“We are a regional AMC with a strong network across New England, but our stronghold has been in the Maine and New Hampshire markets. To partner with an industry leader like Class Valuation will benefit both our lending and appraisal partners,” Robert Strong, CEO of PropertyVal, said in a statement.
It’s at least the third acquisition Class Valuation has made this year alone. In February, the company acquired Detroit-based AMC Metro-West, one of the largest independent residential appraisal firms in the country, with staff across 80 metros. In August, Class Valuation announced the acquisition of AppraisalTek, a Chandler, Arizona-based AMC. Class Valuation said it would bring on AppraisalTek’s 75 full-time employees.
Terms of the deal for PropertyVal, founded in 2006, were not disclosed. Class Valuation is owned by private equity firm Gridiron Capital.
The appraisal management company sector, like many across the housing industry, is undergoing consolidation amid increased regulatory pressures on appraisers and potentially disruptive technological changes.
Earlier this year, Arcapita, a Bahraini investment firm, acquired a stake in Nationwide Property and Appraisal Services for an undisclosed price, giving it access to its 15,000 licensed appraisers. Arcapita said at the time that with “appraisals being a regulatory requirement for mortgages for new home purchases, refinancing, and foreclosures, the $7.5 billion real estate appraisal services market has cumulatively grown by 32% since 2008.”
AMCs like Class Valuation are heavily influenced by changes to conventional appraisal standards.
Fannie Mae and Freddie Mac began accepting desktop appraisals for some mortgages this year, and Freddie has accepted hybrid appraisals as well. The VA also now accepts desktop and exterior-only appraisals.