AIR Statement & Revision Requests
AIR Statement & Changes to a Completed Report
I would like some of the experts to comment on the following:
Here is a scenario: The lender request that the appraiser include an AIR statement in the completed report. Sometimes they even have a preprinted statement that you must include in the report. The appraiser completes the report and includes the required AIR statement. The AMC reviews the appraisal and send back a revision request. They want comp # 4 removed from the appraisal. Maybe they provide you with another sale that they want you to include in the report. This is typical from many AMCs.
My question is: Should you comply with this request?
A couple of thing you may want to consider before you respond.
- The AMC is an agent of the lender. This is a completed report which you have submitted and they are requesting that you make changes to a completed report. Are they attempting to “influence the development, reporting or results of the report”?
- Depending how you answer question # 1 above might have an influence on how you proceed. If you answer “Yes” they are attempting to influence the development or reporting of the appraisal report, isn’t that a violation of the AIR statement that is included in the original appraisal report? Should you remove the AIR statement that you have in the original report? Should you report to the regulators that the AMC, an agent of the lender, violated the AIR by attempting to influence the development and/or reporting of the appraisal report?
This actually happened to me. My response to the AMC was if I made the changes they requested I would have to remove the AIR statement. And that this change in the original report would be noted on the “Addendum” which is attached to the front of the revised report. They decided that I did not need to change the report and they would forward it to the lender.
That was the last time I put an AIR statement in any of my appraisal reports. Be careful what you put in your appraisal report and sign.
The question that I ask all appraisers is: Would you testify in court that the “Lender/AMC, all of their employees, officers and other third parties related to them and the loan transaction, have not violated the AIR”?