SR 18-9:
Frequently Asked Questions on the Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines
OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551
DIVISION OF
SUPERVISION AND REGULATION
October 16, 2018
TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK
Frequently Asked Questions on the Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines
Applicability: This guidance applies to all state member banks, bank holding companies, and nonbank subsidiaries of bank holding companies.
The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (referred to as the "agencies") are issuing the attached Frequently Asked Questions on the Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines to clarify certain aspects of the agencies' appraisal regulations and to consolidate some of the interagency frequently asked questions (FAQs) from a previous release issued in 2005.
In response to questions received from financial institutions, these FAQs assemble previously communicated interpretations and requirements and provide additional examples for a supervised institution's appraisal program, address the appropriate implementation of certain exemptions from the agencies' appraisal regulations, and discuss the preparation of evaluations. These FAQs replace the "Interagency FAQs on the Agencies' Appraisal Regulations and Interagency Statement on Independence of Appraisal and Evaluation Functions" issued in May 2005.1 Certain questions from the 2005 release have been revised and incorporated in the attached FAQs. Several of the 2005 FAQs were previously addressed by the agencies in the 2010 Interagency Appraisal and Evaluation Guidelines. Institutions should use these FAQs in conjunction with existing regulations and guidance on appraisals.
Reserve Banks are asked to distribute this letter to the supervised institutions in their districts and to appropriate supervisory staff. Questions regarding this letter should be directed to the following individuals in the Risk Policy Section in the Division of Supervision and Regulation: Carmen Holly, Senior Supervisory Financial Analyst, at (202) 973-6122; or Peter Clifford, Manager Risk Policy Section, at (202) 785-6057.
In addition, institutions may send questions via the Board's public website.2
signed by
Michael Gibson
Director
Division of
Supervision and Regulation
- SR letter 05-5, "Interagency FAQs on the Agencies' Appraisal Regulations and Interagency Statement on Independence of Appraisal and Evaluation Functions."
- SR letter 16-5, "Interagency Advisory on the Use of Evaluations in Real Estate-Related Financial Transactions."
- SR letter 10-16, "Interagency Appraisal and Evaluation Guidelines."
- 12 CFR 208 subpart E, Real Estate Lending, Appraisal Standards, and Minimum Requirements for Appraisal Management Companies
- 12 CFR 208 subpart E, Appendix C, Interagency Guidelines for Real Estate Lending Policies
- 12 CFR 225 subpart G, Appraisal Standards for Federally Related Transactions
Notes:
1. With the issuance of this SR letter, SR letter 05-5, "Interagency FAQs on the Agencies' Appraisal Regulations and Interagency Statement on Independence of Appraisal and Evaluation Functions," is being made inactive. Return to text
2. See http://www.federalreserve.gov/apps/contactus/feedback.aspx Return to text