This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
63110
Vol. 83, No. 235
Friday, December 7, 2018
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 34
[Docket No. OCC–2018–0038]
RIN 1557–AE57
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. R–1639]
RIN 7100–AF30
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 323
RIN 3064–AE87
Real Estate Appraisals
AGENCY: Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Notice of proposed rulemaking
and request for comment.
SUMMARY: The OCC, Board, and FDIC
(collectively, the agencies) are inviting
comment on a proposed rule to amend
the agencies’ regulations requiring
appraisals for certain real estate-related
transactions. The proposed rule would
increase the threshold level at or below
which appraisals would not be required
for residential real estate-related
transactions from $250,000 to $400,000.
Consistent with the requirement for
other transactions that fall below
applicable thresholds, regulated
institutions would be required to obtain
an evaluation of the real property
collateral that is consistent with safe
and sound banking practices. The
proposed rule would make conforming
changes to add transactions secured by
residential property in rural areas that
have been exempted from the agencies’
appraisal requirement pursuant to the
Economic Growth, Regulatory Relief
and Consumer Protection Act to the list
of exempt transactions. The proposed
rule would require evaluations for these
exempt transactions. Pursuant to the
Dodd-Frank Wall Street Reform and
Consumer Protection Act, the proposed
rule would amend the agencies’
appraisal regulations to require
regulated institutions to subject
appraisals for federally related
transactions to appropriate review for
compliance with the Uniform Standards
of Professional Appraisal Practice.
DATES: Comments must be received by
February 5, 2019.
ADDRESSES: Interested parties are
encouraged to submit written comments
jointly to all of the agencies.
Commenters should use the title ‘‘Real
Estate Appraisals’’ to facilitate the
organization and distribution of
comments among the agencies.
Interested parties are invited to submit
written comments to:
Office of the Comptroller of the
Currency: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Real Estate
Appraisals’’ to facilitate the organization
and distribution of the comments. You
may submit comments by any of the
following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2018–0038’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@
occ.treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2018–0038’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information that you provide
such as name and address information,
email addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2018–0038’’ in the
Search box and click ‘‘Search.’’ Click on
‘‘Open Docket Folder’’ on the right side
of the screen. Comments and supporting
materials can be viewed and filtered by
clicking on ‘‘View all documents and
comments in this docket’’ and then
using the filtering tools on the left side
of the screen.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC 20219. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are deaf or hearing
impaired, TTY, (202) 649–5597. Upon
arrival, visitors will be required to
present valid government-issued photo
identification and submit to security
screening in order to inspect comments.
Board of Governors of the Federal
Reserve System: You may submit
comments, identified by Docket No. R–
1639 and RIN 7100–AF30, by any of the
following methods:
• Agency Website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
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amozie on DSK3GDR082PROD with PROPOSALS1
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
63110
Vol. 83, No. 235
Friday, December 7, 2018
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 34
[Docket No. OCC–2018–0038]
RIN 1557–AE57
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. R–1639]
RIN 7100–AF30
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 323
RIN 3064–AE87
Real Estate Appraisals
AGENCY: Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Notice of proposed rulemaking
and request for comment.
SUMMARY: The OCC, Board, and FDIC
(collectively, the agencies) are inviting
comment on a proposed rule to amend
the agencies’ regulations requiring
appraisals for certain real estate-related
transactions. The proposed rule would
increase the threshold level at or below
which appraisals would not be required
for residential real estate-related
transactions from $250,000 to $400,000.
Consistent with the requirement for
other transactions that fall below
applicable thresholds, regulated
institutions would be required to obtain
an evaluation of the real property
collateral that is consistent with safe
and sound banking practices. The
proposed rule would make conforming
changes to add transactions secured by
residential property in rural areas that
have been exempted from the agencies’
appraisal requirement pursuant to the
Economic Growth, Regulatory Relief
and Consumer Protection Act to the list
of exempt transactions. The proposed
rule would require evaluations for these
exempt transactions. Pursuant to the
Dodd-Frank Wall Street Reform and
Consumer Protection Act, the proposed
rule would amend the agencies’
appraisal regulations to require
regulated institutions to subject
appraisals for federally related
transactions to appropriate review for
compliance with the Uniform Standards
of Professional Appraisal Practice.
DATES: Comments must be received by
February 5, 2019.
ADDRESSES: Interested parties are
encouraged to submit written comments
jointly to all of the agencies.
Commenters should use the title ‘‘Real
Estate Appraisals’’ to facilitate the
organization and distribution of
comments among the agencies.
Interested parties are invited to submit
written comments to:
Office of the Comptroller of the
Currency: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Real Estate
Appraisals’’ to facilitate the organization
and distribution of the comments. You
may submit comments by any of the
following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to
www.regulations.gov. Enter ‘‘Docket ID
OCC–2018–0038’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting
public comments.
• Email: regs.comments@
occ.treas.gov.
• Mail: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2018–0038’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information that you provide
such as name and address information,
email addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically:
Go to www.regulations.gov. Enter
‘‘Docket ID OCC–2018–0038’’ in the
Search box and click ‘‘Search.’’ Click on
‘‘Open Docket Folder’’ on the right side
of the screen. Comments and supporting
materials can be viewed and filtered by
clicking on ‘‘View all documents and
comments in this docket’’ and then
using the filtering tools on the left side
of the screen.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC 20219. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are deaf or hearing
impaired, TTY, (202) 649–5597. Upon
arrival, visitors will be required to
present valid government-issued photo
identification and submit to security
screening in order to inspect comments.
Board of Governors of the Federal
Reserve System: You may submit
comments, identified by Docket No. R–
1639 and RIN 7100–AF30, by any of the
following methods:
• Agency Website: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
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amozie on DSK3GDR082PROD with PROPOSALS1
63111Federal Register / Vol. 83, No. 235 / Friday, December 7, 2018 / Proposed Rules
1 Public Law 115–174, Title I, section 103,
codified at 12 U.S.C. 3356. Effective May 24, 2018,
section 103 provides that a Title XI appraisal is not
required if the real property or interest in real
property is located in a rural area, as described in
12 CFR 1026.35(b)(2)(iv)(A), and if the transaction
value is $400,000 or less. In addition, the mortgage
originator or its agent, directly or indirectly must
have contacted not fewer than three state certified
or state licensed appraisers, as applicable, on the
mortgage originator’s approved appraiser list in the
market area, in accordance with 12 CFR part 226,
not later than three days after the date on which the
Closing Disclosure was provided to the consumer
and documented that no state certified or state
licensed appraiser, as applicable, was available
within five business days beyond customary and
reasonable fee and timeliness standards for
comparable appraisal assignments.
2 See Dodd-Frank Act, § 1473(e), Public Law 111–
203, 124 Stat. 1376, 2191.
3 Public Law 104–208, Div. A, Title II, section
2222, 110 Stat. 3009–414, (1996) (codified at 12
U.S.C. 3311). EGRPRA requires that, not less than
once every 10 years, the Federal Financial
Institutions Examination Council (FFIEC), Board,
OCC, and FDIC conduct a review of their
regulations to identify outdated or otherwise
unnecessary regulatory requirements imposed on
insured depository institutions.
4 12 U.S.C. 3331 et seq.
• Email: regs.comments@
federalreserve.gov. Include the docket
number and RIN number in the subject
line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Address to Ann E. Misback,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments will be made
available on the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room 3515,
1801 K Street NW (between 18th and
19th Streets NW), between 9:00 a.m. and
5:00 p.m. on weekdays.
Federal Deposit Insurance
Corporation: You may submit
comments, identified by RIN 3064–
AE87, by any of the following methods:
• Agency Website: https://
www.FDIC.gov/regulations/laws/federal.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery/Courier: The guard
station at the rear of the 550 17th Street
NW, building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
• Email: Comments@FDIC.gov.
Comments submitted must include
‘‘FDIC’’ and ‘‘RIN 3064–AE87—Real
Estate Appraisals.’’ Comments received
will be posted without change to
https://www.FDIC.gov/regulations/laws/
federal, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
OCC: G. Kevin Lawton, Appraiser and
Real Estate Specialist, (202) 649–6670,
or Mitchell E. Plave, Special Counsel,
(202) 649–5490, for persons who are
deaf or hearing impaired, TTY, (202)
649–5597, or Joanne Phillips, Counsel,
(202) 649–5500, Office of the
Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6260, or Peter
Clifford, Manager Risk Policy Section,
(202) 785–6057, or Carmen Holly,
Senior Supervisory Financial Analyst,
(202) 973–6122, Division of Supervision
and Regulation; or Laurie Schaffer,
Associate General Counsel, (202) 452–
2272, Gillian Burgess, Senior Counsel,
(202) 736–5564, Matthew Suntag,
Counsel, (202) 452–3694, or Kirin
Walsh, Attorney, (202) 452–3058, Legal
Division, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551. For
the hearing impaired only,
Telecommunications Device for the Deaf
(TDD) users may contact (202) 263–
4869.
FDIC: Beverlea S. Gardner, Senior
Examination Specialist, Division of Risk
Management and Supervision, (202)
898–3640, BGardner@FDIC.gov;
Benjamin K. Gibbs, Counsel, (202) 898–
6726; Lauren Whitaker, Senior Attorney,
(202) 898–3872; or Ryan M. Goodstein,
Senior Financial Economist, (202) 898–
6863, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429. For the hearing
impaired only, TDD users may contact
(202) 925–4618.
SUPPLEMENTARY INFORMATION:
I. Introduction
The agencies are inviting comment on
a proposal to increase the threshold
level at or below which appraisals
would not be required for residential
real estate-related transactions from
$250,000 to $400,000. The proposal
would continue to require evaluations
that are consistent with safe and sound
business practices for transactions
exempted by the increased threshold.
Additionally, the proposal would
require regulated institutions to obtain
evaluations for transactions secured by
residential property in rural areas that
have been exempted from the agencies’
appraisal requirement pursuant to the
Economic Growth, Regulatory Relief
and Consumer Protection Act 1 (rural
residential appraisal exemption), and
would fulfill the requirement to add
appraisal review to the minimum
standards for an appraisal, pursuant to
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank
Act).2
The proposal to raise the residential
threshold is based on consideration of
available information on real estate
transactions secured by a single 1-to-4
family residential property (residential
real estate transactions), supervisory
experience, and comments received
from the public in connection with the
Economic Growth and Regulatory
Paperwork Reduction Act (EGRPRA) 3
process, and the rulemaking to increase
the appraisal threshold for commercial
real estate appraisals (CRE Final Rule).
The agencies believe that the proposed
increase to the appraisal threshold for
residential real estate transactions
would reduce burden in a manner that
is consistent with federal public policy
interests in real estate-related
transactions and the safety and
soundness of regulated institutions.
The agencies have long recognized
that the valuation information provided
by appraisals and evaluations assists
financial institutions in making
informed lending decisions and
mitigating risk. The agencies also
recognize and support the role that
appraisers play in helping to ensure a
safe and sound real estate lending
process. The agencies acknowledge as
well that appraisals can provide
protection to consumers by facilitating
the informed use of credit and helping
to ensure that the estimated value of the
property supports the mortgage amount.
However, the agencies also are aware
that the cost and time of obtaining an
appraisal can, in some cases, result in
delays and higher expenses for both
regulated institutions and consumers.
In addition, the agencies are
proposing several conforming and
technical amendments to their appraisal
regulations. The agencies are also
proposing to define a residential real
estate transaction as a real estate
transaction secured by a single 1-to-4
family residential property, which is
consistent with current references to
appraisals for residential real estate in
the agencies’ appraisal regulations and
in Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act
of 1989 (Title XI).4 Adding this
VerDate Sep<11>2014 16:06 Dec 06, 2018 Jkt 247001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\07DEP1.SGM 07DEP1
amozie on DSK3GDR082PROD with PROPOSALS1
1 Public Law 115–174, Title I, section 103,
codified at 12 U.S.C. 3356. Effective May 24, 2018,
section 103 provides that a Title XI appraisal is not
required if the real property or interest in real
property is located in a rural area, as described in
12 CFR 1026.35(b)(2)(iv)(A), and if the transaction
value is $400,000 or less. In addition, the mortgage
originator or its agent, directly or indirectly must
have contacted not fewer than three state certified
or state licensed appraisers, as applicable, on the
mortgage originator’s approved appraiser list in the
market area, in accordance with 12 CFR part 226,
not later than three days after the date on which the
Closing Disclosure was provided to the consumer
and documented that no state certified or state
licensed appraiser, as applicable, was available
within five business days beyond customary and
reasonable fee and timeliness standards for
comparable appraisal assignments.
2 See Dodd-Frank Act, § 1473(e), Public Law 111–
203, 124 Stat. 1376, 2191.
3 Public Law 104–208, Div. A, Title II, section
2222, 110 Stat. 3009–414, (1996) (codified at 12
U.S.C. 3311). EGRPRA requires that, not less than
once every 10 years, the Federal Financial
Institutions Examination Council (FFIEC), Board,
OCC, and FDIC conduct a review of their
regulations to identify outdated or otherwise
unnecessary regulatory requirements imposed on
insured depository institutions.
4 12 U.S.C. 3331 et seq.
• Email: regs.comments@
federalreserve.gov. Include the docket
number and RIN number in the subject
line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Address to Ann E. Misback,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments will be made
available on the Board’s website at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room 3515,
1801 K Street NW (between 18th and
19th Streets NW), between 9:00 a.m. and
5:00 p.m. on weekdays.
Federal Deposit Insurance
Corporation: You may submit
comments, identified by RIN 3064–
AE87, by any of the following methods:
• Agency Website: https://
www.FDIC.gov/regulations/laws/federal.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery/Courier: The guard
station at the rear of the 550 17th Street
NW, building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
• Email: Comments@FDIC.gov.
Comments submitted must include
‘‘FDIC’’ and ‘‘RIN 3064–AE87—Real
Estate Appraisals.’’ Comments received
will be posted without change to
https://www.FDIC.gov/regulations/laws/
federal, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
OCC: G. Kevin Lawton, Appraiser and
Real Estate Specialist, (202) 649–6670,
or Mitchell E. Plave, Special Counsel,
(202) 649–5490, for persons who are
deaf or hearing impaired, TTY, (202)
649–5597, or Joanne Phillips, Counsel,
(202) 649–5500, Office of the
Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6260, or Peter
Clifford, Manager Risk Policy Section,
(202) 785–6057, or Carmen Holly,
Senior Supervisory Financial Analyst,
(202) 973–6122, Division of Supervision
and Regulation; or Laurie Schaffer,
Associate General Counsel, (202) 452–
2272, Gillian Burgess, Senior Counsel,
(202) 736–5564, Matthew Suntag,
Counsel, (202) 452–3694, or Kirin
Walsh, Attorney, (202) 452–3058, Legal
Division, Board of Governors of the
Federal Reserve System, 20th and C
Streets NW, Washington, DC 20551. For
the hearing impaired only,
Telecommunications Device for the Deaf
(TDD) users may contact (202) 263–
4869.
FDIC: Beverlea S. Gardner, Senior
Examination Specialist, Division of Risk
Management and Supervision, (202)
898–3640, BGardner@FDIC.gov;
Benjamin K. Gibbs, Counsel, (202) 898–
6726; Lauren Whitaker, Senior Attorney,
(202) 898–3872; or Ryan M. Goodstein,
Senior Financial Economist, (202) 898–
6863, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429. For the hearing
impaired only, TDD users may contact
(202) 925–4618.
SUPPLEMENTARY INFORMATION:
I. Introduction
The agencies are inviting comment on
a proposal to increase the threshold
level at or below which appraisals
would not be required for residential
real estate-related transactions from
$250,000 to $400,000. The proposal
would continue to require evaluations
that are consistent with safe and sound
business practices for transactions
exempted by the increased threshold.
Additionally, the proposal would
require regulated institutions to obtain
evaluations for transactions secured by
residential property in rural areas that
have been exempted from the agencies’
appraisal requirement pursuant to the
Economic Growth, Regulatory Relief
and Consumer Protection Act 1 (rural
residential appraisal exemption), and
would fulfill the requirement to add
appraisal review to the minimum
standards for an appraisal, pursuant to
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank
Act).2
The proposal to raise the residential
threshold is based on consideration of
available information on real estate
transactions secured by a single 1-to-4
family residential property (residential
real estate transactions), supervisory
experience, and comments received
from the public in connection with the
Economic Growth and Regulatory
Paperwork Reduction Act (EGRPRA) 3
process, and the rulemaking to increase
the appraisal threshold for commercial
real estate appraisals (CRE Final Rule).
The agencies believe that the proposed
increase to the appraisal threshold for
residential real estate transactions
would reduce burden in a manner that
is consistent with federal public policy
interests in real estate-related
transactions and the safety and
soundness of regulated institutions.
The agencies have long recognized
that the valuation information provided
by appraisals and evaluations assists
financial institutions in making
informed lending decisions and
mitigating risk. The agencies also
recognize and support the role that
appraisers play in helping to ensure a
safe and sound real estate lending
process. The agencies acknowledge as
well that appraisals can provide
protection to consumers by facilitating
the informed use of credit and helping
to ensure that the estimated value of the
property supports the mortgage amount.
However, the agencies also are aware
that the cost and time of obtaining an
appraisal can, in some cases, result in
delays and higher expenses for both
regulated institutions and consumers.
In addition, the agencies are
proposing several conforming and
technical amendments to their appraisal
regulations. The agencies are also
proposing to define a residential real
estate transaction as a real estate
transaction secured by a single 1-to-4
family residential property, which is
consistent with current references to
appraisals for residential real estate in
the agencies’ appraisal regulations and
in Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act
of 1989 (Title XI).4 Adding this
VerDate Sep<11>2014 16:06 Dec 06, 2018 Jkt 247001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\07DEP1.SGM 07DEP1
amozie on DSK3GDR082PROD with PROPOSALS1