On October 15, 2010, The Appraiser Independence Rule (AIR) replaced the Home Valuation Code of Conduct (HVCC). AIR includes additional requirements to enhance HVCC's objective of appraiser independence, robust protections for the entire housing market, including the lenders we serve, mortgage investors, appraisers and in particular, consumers.
The Appraiser Independence Requirements Enhancing the Independence of Appraisers
The Appraisal Independence Requirements (AIR) were developed by Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA) and other stakeholders.
Appraiser Independence Safeguards
A. An "appraiser" must be, at a minimum, licensed or certified by the State in which the property to be appraised is located.
B. No employee, director, officer, or agent of the Seller, or any other third party acting as joint venture partner, independent contractor, appraisal company, appraisal management company, or partner on behalf of the Seller, shall influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or in any other manner including but not limited to:
Does AIR change any of Fannie Mae's, Freddie-Mac's or HUD's requirements regarding the role of the appraiser?
No. The requirements for appraisers continue to be at a high standard of quality. Appraisers must provide complete and accurate reports; to report neighborhood and property conditions in factual and specific terms; to be impartial and specific in describing favorable or unfavorable factors; and to avoid the use of subjective, racial, or stereotypical terms, phrases, or comments in the appraisal report. The opinion of market value must represent the appraiser's professional conclusion, based on market data, logical analysis, and judgment. Appraisers certify to their respective knowledge and experience in appraising the type of property appraised in each market area. Appraisers must also be aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records, and other such data sources for the area in which the property is located.
At The Appraisal Hub, we ensure our systems and processes are built to be fully compliant with the Appraiser Independence Requirements and all other applicable laws, regulations and rules governing Appraisal Management Companies.
The sale of the following mortgages is excluded from the representation and warranty: FHA/VA Mortgages, Section 184 Native American Mortgages, and Section 502 Guaranteed Rural Housing Mortgages. Independent Valuation Protection Institute
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If you have any questions for us, feel free to contact us at: info@TheAppraisalHub.com
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