What is the purpose of the Appraiser Independence Requirements (AIR) in the appraisal process?

• A. AIR regulates appraisal values
• B. AIR ensures appraisers are independent and free from undue influence by lenders or borrowers to preserve valuation integrity
• C. AIR sets the appraisal report format
• D. AIR applies only to commercial loans

Answer: (B)

Appraiser Independence Requirements focus on keeping appraisal judgments free from pressure or influence by lenders or borrowers. This independence protects the appraisal from bias, ensuring the appraiser can form an objective opinion of value and report it without interference. Safeguards like separating the appraiser from the ordering party, and often using an appraisal management process, help prevent attempts to steer the result toward a desired loan outcome. The result is a valuation that reflects true market value, supporting fair financing decisions and maintaining trust in the appraisal process. AIR does not set values, does not dictate the report format, and it applies to residential mortgage transactions (not exclusively to commercial loans).