The federal banking agencies jointly adopted Interagency Appraisals and Evaluation Guidelines that describe “the elements of a sound program for conducting appraisals and evaluations and address supervisory matters related to real estate appraisals and evaluations used to support real estate-related financial transactions.” The agencies said that the guidelines incorporate their recent supervisory issuances regarding appraisals, and that the guidelines discuss their expectations regarding a financial institution’s appropriate use of analytical methods and technological tools in developing evaluations. The guidelines also stress that financial institutions must maintain strong internal controls to ensure the reliability of appraisals and evaluations. Furthermore, the agencies note that the guidelines may need to be updated after the agencies adopt regulations to implement the Dodd-Frank Act. Click here for the guidelines.
Alert December 14, 2010