The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the National Credit Union Administration (NCUA) – collectively known as the federal financial regulatory agencies – issued final supervisory guidance on real estate appraisals and evaluations. The guidance covers . It covers appraisal independence, minimum standards, BPOs, review appraisals, third party arrangements, and referrals.
The Guidelines were originally published in 1994 to provide guidance on prudent appraisal and evaluation policies, procedures and practices for federally regulated institutions. The agencies issued proposed guidance in November 2008, made revisions to the proposal, and are now issues the guidance.
According to a joint news release by the agencies, “[t]he Interagency Appraisal and Evaluation Guidelines, which replace 1994 guidelines, explain the agencies’ minimum regulatory standards for appraisals. The guidelines incorporate the agencies’ recent supervisory issuances on appraisal practices, address advancements in information technology used in collateral valuation practices, and clarify standards for the industry’s appropriate use of analytical methods and technological tools in developing evaluations. Financial institutions should review their appraisal and evaluation programs to ensure they are consistent with the guidelines.”