The purpose of the FED’s Regulation Y, and the OCC, FDIC, and OTS appraisal regulations is to ensure that real estate appraisals are performed by competent appraisers in accordance with uniform standards. The goal is to strengthen real estate loans and investments by assuring that the appraisal values used in lending decisions are reliable. The appraisal regulations are designed to help financial institutions avoid losses resulting from overvalued real estate collateral. They apply to certain real estate transactions involving institutions whose deposits are insured by the federal government.
This module will provide compliance officers with a complete guide to the appraisal standards they need to ensure are in place at their banks.
This course has an examination.
Learning Objectives:
- Ensure proper policies and procedures regarding real estate appraisal are in place at your bank
- Discuss the difference between state certified and state licensed appraisers
- Ensure the appraisers your bank employs have the necessary qualifications
Course Outline:
o Regulation of Real Estate Appraisals
o Effective dates
o 2010 guidelines
o State requirements
o Appraisal and evaluation programs
o Timing of appraisals and evaluations
o Compliance procedures
o Written critique
o Useful life of appraisals or evaluations
o Material changes to reported values
o Reappraisals and reevaluations of the collateral
o Deciding to reappraise or reevaluate
o Readdressed appraisals
- Transactions Requiring Appraisals
o Transactions requiring a state certified or state licensed appraiser
o Transactions requiring an evaluation
o Appraisals to address safety concerns
o Complex and non-complex appraisals
o Transactions that require a state certified appraiser
o Appraiser qualifications
o Appraiser independence
o Certified residential real estate appraisers
o Professional association memberships and appraiser competence
- Other Real Estate Appraisal Requirements
o Temporary appraisal exemptions for disaster areas
o Enforcement
Duration:
0.83 hours
Features:
Audio, Hybrid
Module(s):
4512EN
