What is appraisal independence requirements?

Appraiser Independence Requirements (AIR) are a set of standards designed to replace the Home Valuation Code of Conduct (HVCC). The main objective was to preserve the intent of HVCC while continuing to improve security for mortgage investors, lenders, real estate brokers, home buyers, and the overall housing industry.

What is appraisal valuation Acknowledgement?

Acknowledgement of Receipt of Appraisal is a letter signed by the loan applicants to acknowledge their receipt of the appraisal report or any other written valuation on the date mentioned in the letter.

What type of loan may require compliance with appraiser independence requirements?

Both Fannie Mae and Freddie Mac require that all single-family loans they purchase adhere to standards for solicitation, selection, compensation, and practitioner independence when it comes to home appraisals.

What is an appraisal waiver letter?

An appraisal waiver is a document loan applicants sign to tell the lender that they’re waving their right to receive the appraisal report at least three days before the loan is consummated.

What is an appraisal receipt form?

This form certifies that the Lender has delivered to the Borrower a copy of each appraisal report or valuation developed in connection with their application for credit. The information below indicates the date the Borrower was sent a copy of the appraisal a minimum of three business days(1) prior to closing. Loan #

When must a borrower receive a copy of the appraisal?

A creditor shall provide a copy of each such appraisal or other written valuation promptly upon completion, or three business days prior to consummation of the transaction (for closed-end credit) or account opening (for open-end credit), whichever is earlier.

Why would a lender cancel an appraisal?

An Appraisal Is Not Needed Lenders might waive a new in-person appraisal because the home’s market value was calculated so recently. The same can be said for refinancing a home. If little time has passed since the original appraisal, a lender may be willing to waive the in-person appraisal when refinancing.

Why would a seller want to waive the appraisal?

Waiving an appraisal contingency can be a smart tactic for standing out in a competitive seller’s market. Doing so could eliminate a seller’s fear that the deal might fall through if the property isn’t appraised for the initial asking price.

Is appraisal waiver a good idea?

An appraisal waiver does come with some benefits for buyers. An appraisal waiver will save buyers money. The costs of these in-person visits vary, but they typically run from $300 – $450. An appraisal waiver can also reduce the amount of time it takes to close on a home.