Fannie Mae released new requirements on September 19, 2023 that are considered important protections for mortgage investors, homebuyers, and the housing market.

Appraiser Independence Requirements (AIR) set forth standards to safeguard the independence, objectivity, and impartiality of appraisers and other independent parties throughout the valuation process for 1-4 residential properties.

Property Data Collector Independence Requirements (PDCIR) set forth standards to safeguard the independence, objectivity, and impartiality of property data collectors and other Independent Parties throughout the property data collection process.

Key Rules

• General requirements prohibit any person to influence or attempt to influence the development, reporting, result or review of an appraisal [under any of the listed circumstances].
• Acceptability of subsequent appraisals are covered in the new requirements, and include provisions which prohibit ordering subsequent appraisals unless there are indicators of inaccuracy, credibility, or other listed violations found on the initial appraisal; compliance to pre-established pre- or post-funding appraisal review or quality control process; if the subsequent appraisal is required by law.
• Borrowers must be provided with a copy of the appraisal report at least 3 business day prior to loan closing.
• Lenders must separate their sales and mortgage production functions from appraisal functions.
• Use of in-house appraisals, transfer of appraisals, and referrals of misconduct are addressed in the new rules.
• Lenders must adopt written policies and procedures to ensure compliance.

The entire AIR document is available at the link below.

View the new Fannie Mae Appraiser Independence Requirements (AIR)