Note that apart from assignments for federally related transactions, there is no USPAP requirement to use any specific definition of market value.
Reporting Requirements for Federally Related Transactions * Obtain written concurrence from client that there is agreement for use of departure.
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
The group's letter maintained that while the intention of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), was to raise the professionalism of appraisers involved in federally related transactions
, the associations believe the act has actually hindered the development of the profession, promoting only "minimum" qualifications for appraisers and failing to provide effective federal oversight of the system.
The court held that FIRREA included transactions below the de minimis level in its definition of federally related transactions
However, the GAO noted that "opportunities exist to enhance the effectiveness of the current regulatory system to help ensure that federally related transactions
are based on accurate assessments of the value of properties used as collateral for loans.
After the savings and loan collapse in the 1980s, Congress passed the Financial Institutions Reform, Recovery and Enforcement Act, creating the Resolution Trust Corporation and identifying federally related transactions