In collaboration with Freddie Mac, Fannie Mae updated the Appraiser Independence Requirements (AIR) and introduced Property Data Collector Independence Requirements (PDCIR). These requirements are designed to protect the integrity of the collateral valuation process for mortgage lending, and manage risk for lenders, investors, and borrowers, Fannie Mae announced on its website.
Fannie Mae updated the AIR to clarify that mortgage brokers, loan officers/loan originators, and production staff are not allowed to order appraisals, or be involved in the collateral valuation process at all. These parties are now referred to as “Restricted Parties.”
Additionally, the update clarifies that appraisers, appraisal management companies, and appraisal firms all fall under the same protections and are referred to as “Independent Parties;” and improve readability and clarity through reorganization of the content and other improvements.
“We developed and introduced the new PDCIR to address property data collector independence requirements similar to those in AIR for Fannie Mae and Freddie Mac loans,” Fannie Mae stated. “While property data collection is not an appraisal, property data collectors are an important part of the collateral risk management process for mortgage lending and must operate independently, as appraisers do.”
The PDCIR is effective for loans with application dates on and after Nov. 1.