Developed by Fannie Mae, the Federal Housing Finance Agency (FHFA), Freddie Mac, and key industry participants, the Appraiser Independence Requirements (AIR) replaced the Home Valuation Code of Conduct (HVCC). The updated requirements, which went into effect in 2010, maintain the spirit and intent of the HVCC and continue to provide important protections for mortgage investors, home buyers, and the housing market.
Under the rules, an appraiser must be, at a minimum, licensed or certified by the State in which the property to be appraised is located. In addition, 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, is allowed to 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.
A few important things to keep in mind:
- AIR rules apply to all loans of one- to four-unit properties, except government-insured loans delivered to Fannie Mae.
- AIR requires that, at a minimum, an appraiser must be licensed or certified by the state in which the property to be appraised is located.
- AIR does not apply to loans sold for loss mitigation.