Fannie Mae Appraiser Requirement Update

Fannie Mae has introduced significant updates to its appraiser independence requirements (AIR) and introduced new property data independence requirements (PDCIR) in a recent announcement. These changes are designed to safeguard the impartiality and independence of appraisers and other Independent Parties during the valuation process for 1 to 4-unit residential properties. The changes include clarifications that mortgage brokers, LOs production staff are restricted from ordering appraisals or participating in the collateral valuation process. Appraisers, appraisal management companies (AMCs), and appraisal firms now fall under the same protections as 'independent parties' under the revised AIR.

The revisions also address property data collector independence requirements (PDCIR), with implementation for loans starting from November 1, 2023. Brian Zitin, CEO of valuation software company Reggora, notes that these changes have far-reaching implications, affecting how retail, wholesale, and brokerage industries interact with AMCs. Notably, AMCs will be treated similarly to appraisers, meaning that sales staff and others cannot directly order appraisals from specific AMCs or appraisers. This shift underscores the importance of modern appraisal management platforms for compliance and emphasizes the focus on appraisal quality and service over relationship-building. Overall, these updates signal the industry's commitment to enhancing transparency and fairness in property valuation processes.