On October 16, 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC collectively issued frequently asked questions (FAQs) regarding the agencies’ appraisal regulations and guidance.
The FAQs are meant to assemble previously communicated policy and interpretations and should not be read as new policy or guidance. The FAQ’s rely on the agencies’ appraisal regulations issued under (1) Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989; (2) the real estate lending standards; (3) the December 2010 Interagency Appraisal and Evaluation Guidelines; and (4) the March 2016 Interagency Advisory on the Use of Evaluations in Real Estate-Related Financial Transactions.
For example, one of the FAQs clarifies that a financial institution does not always need a new appraisal or evaluation for an existing loan if the market value conclusion, done through a fact-specific analysis, remains valid. The response to this question then provides examples of some of the factors that should be considered in making the market value conclusion.
The FAQs may be found here.