Note that apart from assignments for federally related transactions
, there is no USPAP requirement to use any specific definition of market value.
Also, the agencies reduced the number of supervisory appraisal standards from 14 to 5 and allowed the use of the Departure Provision in USPAP for federally related transactions
It was established within the Federal Financial Institutions Examination Council (FFIEC) to provide oversight of the real estate appraisal process as it relates to federally related transactions
Section 1119 refers to the use of licensed or certified appraisers by financial institutions in federally related transactions
Management shall verify that appraisers providing appraisals in support of federally related transactions
are either licensed or certified as required by the appraisal regulations.
The Appraisal Subcommittee is required to maintain a national registry of state certified and licensed appraisers who are eligible to perform appraisals in federally related transactions
In that light, the Board promulgated its final regulation with a $100,000 threshold above which appraisals would be required for federally related transactions
Title XI of FIRREA was enacted "to promote the safety and soundness of insured institutions by requiring that real estate appraisals utilized in connection with federally related transactions
be performed in writing in accordance with the uniform standards by individuals whose competency has been demonstrated and whose professional conduct is subject to effective supervision.
However, an AMC is barred by section 1124 [of Title XI of the Financial Institution Reform, Recovery and Enforcement Act of 1989 as added by Dodd-Frank's section 1473] from providing appraisal management services for federally related transactions
in a state that has not established such a regulatory structure," the press release stated.
If it is determined that a state does not have a compliant reciprocity policy in place, it is possible that appraisers in that state could be removed from the National Registry and no longer be eligible to provide appraisals in conjunction with federally related transactions