Category Archives: Our Take

The SWOT Analysis

Should commercial appraisals emphasize a particular client’s risk perspective? For financial institutions, chief appraisers are concerned about collateral risk. Its impact on the quality of loan origination. For buyers, addressing potential investor red flags for proper due diligence is paramount. A property-specific risk analysis would add an additional desirable dimension to appraisals. The commercial appraisal […]

Interagency Appraisal and Evaluation Guide

“The OCC, FRB, FDIC, OTS, and NCUA are issuing final Interagency Appraisal and Evaluation Guidelines (Guidelines) to provide further clarification of the Agencies’ appraisal regulations and supervisory guidance to institutions and examiners about prudent appraisal and evaluation programs. The Guidelines, including their appendices, update and replace existing supervisory guidance documents to reflect developments concerning appraisals and evaluations, […]

National Association of Home Builders Speaks to Appraisal Reform

“The current residential appraisal system is impaired due to inconsistent and conflicting standards and guidance; inadequate and uneven oversight and enforcement; a shortage of qualified and experienced residential appraisers; and, the absence of a robust and standardized data system. The National Association of Home Builders (NAHB) believes these problemsmust be addressed in order to restore […]

United States Accountability Office (GAO) Reports to Congressional Committe that Appraisal Subcommittee needs to improve Monitoring Procedures

What GAO Found “GAO found that more than 70 percent of residential mortgages made from 2006 through 2009 were $250,000 or less—the regulatory threshold at or below which appraisals are not required for transactions involving federally regulated lenders. In recent years, however, the threshold has had a limited impact on the proportion of mortgages with […]