TCO APPRAISALS understands that mortgage lending can be a confusing process for the average homeowner. Our team is here to help you through the process including informing you of the recent changes in the appraisal industry. We want to cover any misconceptions that the borrower/buyer may not know about during the lending process including HVCC and the Appraiser Independence Requirements (AIR).
What Loans Are Affected By Appraiser Independence Requirements (AIR)?
AIR applies to all conventional, single family (1-4 units) loans that originated on or after October 15, 2010. The requirements of AIR were specially developed by the Federal Housing Finance Agency (FHFA), Fannie Mae, Freddie Mac and other key industry participants to replace the outdated Home Valuation Code of Conduct (HVCC). The updated requirements continue to maintain the spirit and intent of the HVCC while also providing important protections for home buyers, mortgage investors and the housing market.
Does AIR Apply to Non-Origination Valuation Activities Like Appraisals Performed for Loss Mitigation Activities?
No, it does not. AIR only applies to the loan origination process. AIR is not applicable to a lender’s foreclosure/REO process or any other type of loss mitigation activity.