Agencies Issue Final Guidelines On Appraisals, Property Valuations

Posted by Orb Staff on December 03, 2010 No Comments
Categories : Residential Mortgage

The federal financial regulatory agencies have issued final supervisory guidance on sound real estate appraisal and evaluation practices by financial institutions.

The Interagency Appraisal and Evaluation Guidelines – issued by the Federal Reserve System, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the National Credit Union Administration – explain the agencies' minimum regulatory standards for appraisals.

According to a joint statement from the regulators, the guidelines emphasize that financial institutions should choose appraisers and people performing property valuations based on their competence, experience and knowledge of the market and type of property being valued.

Financial institutions are expected to demonstrate the independence of their processes for obtaining valuations, as well as maintain ‘strong internal controls to ensure reliable appraisals and evaluations.’

The guidelines can be accessed here.

SOURCE: Federal Reserve System

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