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The Agencies Have Spoken

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.”

Comments
  1. JOAN HUHN

    THIS IS ALL CRAP. LET SOMEONE WORK IN THIS FIELD FOR A WEEK AND THEN
    SEE WHAT GOES ON. THE BANKS APPRAISAL MANAGEMENT COMPANIES, WHO DO NOT HAVE TO REGISTER WITH THE STATE???? WHY DO THEY GET TO HAVE TOTAL CONTROL. ??, THEY GIVE US “CORRECTION” ON EVERYTHING. THEY TELL YOU TO CHANGE EVERYTHING PRACTICALLY IN THE REPORT AND ALSO TO EXPLAIN EVERYTHING THAT THEY DON’T UNDERSTAND. ANY PROBLEM WITH THE APPRAISAL, YOU CAN BET, IS PRESSURE FROM MANAGEMENT COMPANIES THAT COME FROM THEIR CLIENTS- THE BANKS.. WE SPEND MORE TIME CORRECTIING EVERYTHING ON THE REPORT AND TALKING TO UNDERWRITTERS WHO DON’T KNOW A THING,
    THAN DOING THE APPRAISAL. THERE ARE OF COURSE BAD AND GOOD IN EVERY FIELD INCLUDING THE NEWS WHO SEEM TO WANT TO SELLS PAPERS AND NOT FACTS. MOST BANKS INSIST ON “DECLING VALUES” OR REALLY GIVE YOU A BAD TIME IF YOU DON’T COOPERATE FULLY. THEY JUST DROP YOU FROM THEIR LIST
    AND TELL YOU THAT YOU DID THINGS WRONG THAT ARE TOTALLY INCORRECT.
    WE HAVE NO RECOURSE. STARVE OR COOPERATE. I AM STARVING AT THIS POINT. GOOD THING I AM ON SOCIAL SECURITY AND NOT DEPENDING ON THIS.
    APPRAISALS HAVE ME SO DISGUSTED. BANKS ARE NOW TRYING TO GET RID OF THE OTHER MANAGEMENT COMPANIES AND TELLING THEM TO USE THEIR APPRAISERS IF THEY ARE GOING TO UNDERWRITE THE LOAN. THERE WON’T BE APPRAISERS SHORTLY. THEY ARE SHORT AS IT IS. ITS ALL POLITICS. THE ONLY ONE ACCUSED OF FRAUD ARE THE LITTLE GUYS THAT MAKE NO MONEY. I WAS TOLD YOU NEED INTENT TO COMIT FRAUD AND THAT IS NOT MAKING $50 ON AN APPRAISAL. COULD IT BE THE BANKS THAT GIVE THE BIG BONUS’S. DO YOU KNOW HOW MUCH THE BANKS MADE RIPPING OFF THE APPRAISERS LAST YEAR. I READ IT WAS IN THE BILLIONS. GET THE FACTS. I HAVE BEEN IN REAL ESTATE 37
    YEARS AND NEVER SEEN SUCH A MESS. THE BANKS DON’T WANT LOANS RIGHT NOW. INTEREST IS TOO LOW SO AS USUAL THE APPRAISERS AND REALTORS ARE THE FALL GUYS. EVERYTHING IS OUR FAULT. SOMETHING WAS WRONG WITH THE APPRAISAL. NOT!!!! JOAN HUHN

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