FDIG~-~)
FEDERAL DEPOSIT INSURANCE CORPORATION
FOR IMMEDIATE REI.EASE
PR-131-91 (9-10-91)
NEWS RELEASE
Contact: Frank Gresock
(202) 898-6634
FDIC PROFDSES AMENJ::l.1ENTS 'IO APPRAISAL Rm.JI.ATIONS
'Ihe Board of Directors of the FDIC today issued for comment proposed
amendments to its appraisal re:JU).ations in response to issues raised by
FDIC-supervised banks arrl others concerned about the cost of compliance. The
proposed amendments are similar to those being developed by other federal
bank regulators.
The amendments would decrease the number of transactions requiring an
appraisal prepared by a certified or licensed appraiser, thereby reducing the
costs of these transactions. If adopted, the proposed amendments would:
o Raise the threshold to $100,000 from $50,000 for transactions
covered by the regulation.
o Pennit the use of appraisals made for loans insured or guaranteed by
an agency of the federal goverranent.
o Clarify that the appraisal requirements do not apply to mineral
rights, timber rights or growing crops.
Existing FDIC regulations, published August 20, 1990, identify the real
estate transactions requiring an appraisal, establish minimum standards for
performing appraisals, arrl distinguish between appraisals that require the
services of a state-certified appraiser arrl those that require a
state-licensed appraiser.
(more)
FEDERAL DEPOSIT INSURANCE CORPORATION. 550 Seventeenth St., N.W., Washington, D.C. 20429 • 202-898-6996
FEDERAL DEPOSIT INSURANCE CORPORATION
FOR IMMEDIATE REI.EASE
PR-131-91 (9-10-91)
NEWS RELEASE
Contact: Frank Gresock
(202) 898-6634
FDIC PROFDSES AMENJ::l.1ENTS 'IO APPRAISAL Rm.JI.ATIONS
'Ihe Board of Directors of the FDIC today issued for comment proposed
amendments to its appraisal re:JU).ations in response to issues raised by
FDIC-supervised banks arrl others concerned about the cost of compliance. The
proposed amendments are similar to those being developed by other federal
bank regulators.
The amendments would decrease the number of transactions requiring an
appraisal prepared by a certified or licensed appraiser, thereby reducing the
costs of these transactions. If adopted, the proposed amendments would:
o Raise the threshold to $100,000 from $50,000 for transactions
covered by the regulation.
o Pennit the use of appraisals made for loans insured or guaranteed by
an agency of the federal goverranent.
o Clarify that the appraisal requirements do not apply to mineral
rights, timber rights or growing crops.
Existing FDIC regulations, published August 20, 1990, identify the real
estate transactions requiring an appraisal, establish minimum standards for
performing appraisals, arrl distinguish between appraisals that require the
services of a state-certified appraiser arrl those that require a
state-licensed appraiser.
(more)
FEDERAL DEPOSIT INSURANCE CORPORATION. 550 Seventeenth St., N.W., Washington, D.C. 20429 • 202-898-6996
-2-
Transactions below the $100,000 threshold would remain subject to
active federal supervision. Any transaction not covered. by the regulation
would be supported by an appropriate estimate of value prepared in
accordance with the FDIC guidelines for Real Estate Appraisal Policies and
Review Prcx::edures.
Comments on the proposal will be accepted within 60 days of
publication in the Federal Register.
#####
Transactions below the $100,000 threshold would remain subject to
active federal supervision. Any transaction not covered. by the regulation
would be supported by an appropriate estimate of value prepared in
accordance with the FDIC guidelines for Real Estate Appraisal Policies and
Review Prcx::edures.
Comments on the proposal will be accepted within 60 days of
publication in the Federal Register.
#####