Letting the AIR Out!
- Hybrid Assignments, the Consequences - February 7, 2019
- Bankers Concerned About Appraisals - October 18, 2017
- Third Party Blues - July 19, 2017
After all it’s AIR; not a vacuum.
First, HVCC is dead. Dead and buried. It died back in 2010.
Second, even when it was still plaguing the profession, it never stated that appraisers couldn’t or shouldn’t talk to real estate agents or brokers.
I still have a copy of the HVCC because you never know when revisionist history will appear.
Eventually, AIR took its place. AIR stands for Appraiser Independence Requirements.
I have a copy of AIR. It resembles HVCC in many ways but, again, it doesn’t say a single word about appraisers being prohibited from chatting up or being chatted up by a real estate agent or broker.
So, why do I still hear crazy stories of appraisers refusing sales data from agents and brokers and refusing to discuss the transaction with them? What does AIR really say? It basically addresses collusion, bribery, inducement… the generally obvious and blatant forms of coercion. Not garden-variety chit-that between two real estate professionals about a transaction with which they’re both involved.
Apparently, for some appraisers, any discussion with a broker is a sinister It died back in 2010. back-channel to fraud.
There’s a bright line between remaining independent and becoming a Howard Hughes-like recluse about your appraisal product. Not every conversation with a broker about relevant sales that might have been overlooked can be construed as inappropriate influence. It’s no less outrageous than when some brokers accuse appraisers of killing their deals.
Many of the complaints coming in lately involve some appraiser’s unwillingness to engage brokers on any level. Clients have even given written permission for an appraiser to discuss the report with the borrower only to have the appraiser disappear.
As a valuation professional, you should be able to tell the difference between honest assistance and a threat. You should be able to defend your conclusions. Right?
Appraisers need to take a deep breath and relax. Stop being so fearful about conversation.
After all it’s AIR; not a vacuum.
By Lee Lansford – Illinois Appraiser Newsletters – Volume 4, Issue 12
I love AIR, I breath the AIR – just need others to understand the AIR.
Personally I think your AIR smells like a gigantic pile of horse dung; only slight sweeter than the rotting meat smell than HVCC possessed.
When you decide to replace your AIR with real oxygen (fair fees, ability to collect at the door, 3 comps rather than 9, no more 1004 MC & end the UAD crap) let us know. Several thousand intelligent appraisers with 10+ years experience sit on the sidelines working in careers that actually pay (brokerage, home inspection, flipping, managing real estate syndicates, etc.).
Nice post and very informative. I love the AIR.
There will always be valuation pressure. Keeping appraisers from being intimidated is the main way to prevent it. Rotational unbiased order distribution is one way to start. You’ve got to feel bad for those younger appraisers who will never have a chance to learn about the mortgage process through communications with people like bankers and underwriters. The Realtor is in charge of price. The appraiser is in charge of value.