AIR Statement & Revision Requests

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.

  1. 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”?
  2. 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”?

John Pratt
Latest posts by John Pratt (see all)
Image credit flickr - takomabibelot
John Pratt

John Pratt

Self-employed since 1999. Banking Industry for over 20 years: Real Estate Loan Officer, Commercial Loan Officer, Manager Loan Dept, Senior Loan Officer in charge of Lending. President & CEO of an Independent Bank in California. Chief Financial Officer of 2 startup firms in Silicon Valley which raised over $5,000.000 in startup venture capital. He also conducts meeting which are open to all appraisers on a monthly basis with an open format discussing anything related to the appraisal industry.

You may also like...

6 Responses

  1. Retired Appraiser Retired Appraiser says:

    Been there and done that…long ago.

    YES they are clearly trying to influence the value that you render within your report.

    YES the AMC will threaten you with nonpayment as soon as you respond with a refusal to comply.

    YES you need to inform the AMC that you turned them in to the appropriate regulatory agency for coercion.

    YES you will receive payment from the AMC via overnight mail after turning them in.

    YES you are an idiot for staying in the business so why cry about it? You’ve known that the keys to the kingdom were handed to thieves in 2009 yet you’ve justified working with those thieves because you had a family to feed.


    • Avatar Charles (Don) Clark says:

      Does your state board have supervision over AMC’s? If so, file a complaint. If they do not, then file a complaint with the OCC, the ASC, the CFPB, and the lender who is the appraisers client. Let them know it is your intent to do so. Let them know it is a violation of Dood-Frank federal law. tell them to send you a check immediately.

      At least that is what I would do.

      Charles (Don) Clark, AQB Certified USPAP Instructor

      • Retired Appraiser Retired Appraiser says:

        Like many states, the Kentucky Real Estate Appraisers Board chose to exploit AMCs as a money making venture.  They make a killing by charging AMCs an annual registration fee.  There are currently 121 AMCs registered in our state.  I believe that each is billed around $800 to register each year.  I can’t say that I blame the board for searching for alternatives to raising funds with the number of appraisers shrinking each year.  To make matters worse yet, Kentucky’s government has no problem plundering agencies and boards with excess funds each year.  In short, Kentucky views AMCs much like they do the state lottery.  They are a means of raising funds for the state.  I know of no instance where an AMC has received a reprimand much less been prosecuted in this state.

  2. Baggins Baggins says:

    Forget about the amc descriptor when it comes to these issues.  I have noticed a definite trend that amc or not, the underwriters are the biggest current problem appraisers face.  The sudden proliferation of XML based review software is an absolute nightmare.  Like the T2 at Skynet is now reviewing all of my reports.  He does not think, he is not logical, and he does not read.  That’s a modern XML focused reviewer for you, a total moron.  This issue is not specific to an amc or not.  AIR is a joke, and it’s just a myth and a tool used by lenders to continue to bully appraisers.  Here, now that I’ve slapped you in the face, would you please sign this release form promising you won’t sue me for slapping you, and also affirming that you never were slapped in the first place?   If you don’t sign it, I’ll slap you again so you’d better sign it!  That’s a day in the life of an appraiser who engages FNMA UCDP XML systems.   UCDP is the absolutely worst thing to hit appraisal industry ever.  Not because of UCDP itself, but because of how the data warnings are utilized by underwriters, to force the change of the appraisal reporting, thereby absolutely compromising appraiser independence.

  3. Avatar Jman says:

    Its just a matter of reviewing the sale provided and either using it because you really did miss a good sale or explaining why you didnt use it.  If you get too many request for non comprable sales then change clients or at a minimum take a look at your report and make sure you are doing a good job and properly evaulating the available sales. It would be nice if these forums became less of a gripe session that we have all heard too many times. Air and uspap allow providing sales to appraiser without violating independence.

  4. MY THINKING: An appraisal is not and should not be a Collaborative effort, including trainees AND OTHERS CO-signing reports.


Leave a Reply

We welcome critical posts & opposing points of view. We value robust & civil discourse. You may openly disagree, but state your case in an atmosphere of mutual respect, in which everyone has a right to a particular view about the topic of conversation. Please keep remarks about the topic at hand, & PLEASE avoid personal attacks. If the poster gets you upset, it is the Internet, you can walk away from it.

Personal attacks harm the collegial atmosphere we encourage on AppraisersBlogs.

Your email address will not be published. Required fields are marked *

xml sitemap

AIR Statement & Revision Requests

by John Pratt time to read: 2 min