Fannie Mae recently published a new guideline ((Lender Letter) March 25, 2014) to lenders regarding small towns, in that letter they emphasized the AIR (Appraiser Independence Requirements) for lenders. Many lenders are under the impression that they are “required” to use an AMC (Appraisal Management Company) or third parties to order appraisals.“Appraiser Selection
Lenders are free to select appraisers for any appraisal assignment, but must ensure that the selected appraiser has the requisite knowledge, expertise, and experience for the specific assignment type and market area.
Appraisal Management Companies and other Third-Party Vendors
A common misconception of Fannie Mae’s Appraiser Independence Requirements (AIR) is that lenders are required to use third-party vendors or appraisal management companies (AMCs) to ensure compliance. In fact, lenders are not required to use an AMC or any other third-party vendor to order appraisals.
AIR allows lenders to select any of the following:
– in-house appraisers whose function is separate and independent of loan production staff influence and interference,
– independent fee appraisers,
– third-party vendors, or
– AMCs.”
Source – Fannie Mae Lender Letter LL-2014-02 – March 25, 2014
About Robert Coyne
