Last month, the Appraisal Buzz Newsletter conducted a short survey to its readers regarding Appraiser Independence Requirements (AIR). AIR was developed by Fannie Mae, the Federal Housing Finance Agency, Freddie Mac, and key industry participants to replace the Home Valuation Code of Conduct (HVCC). The purpose was to continue to provide important protections for mortgage investors, home buyers, and the housing market. AIR went into effect in 2010; currently only Fannie Mae and Freddie Mac have agreed to adopt these requirements. Below are some highlights from the survey results sponsored by Clearbox.
Since the implementation of AIR, most survey respondents say that the amount of appraisal pressure to change the condition of the subject property hasn’t changed, and of those who still receive pressure say the pressure comes from AMCs, followed by underwriters. Real estate agents are at the top of the list when it comes to pressuring appraisers to inflate values, followed by AMCs and the consumer/homeowner, respectively.
Since AIR, 8% of respondents said that they had been placed on a blacklist. Of those placed on a blacklist, lenders were cited as being the top party responsible for putting them on a blacklist followed by AMCs. 51% of those placed on a blacklist were never notified and 15% of appraisers that were blacklisted were offered a rebuttal process and a way to get back on the panel.
Thank you to those who took the time to complete the survey. In the past, survey results like these have been used by GSE’s, regulators, lenders, and top executives to illustrate what is going on in the industry. Your opinions matter and is shared with those in power to effect change. It doesn’t cost anything but a small amount of time to relay important information that only the appraiser in the field can provide to those implementing the rules of engagement. Be sure to include your thoughts on the current Appraisal Buzz poll regarding appraisal turn times, click here to participate.
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