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The four federal regulators of banks and savings associations
announced today joint guidelines to help lenders implement appropriate
procedures for conducting appraisals and evaluations of real estate. The
guidelines, which are effective immediately, clarify and elaborate on the
amended appraisal rule issued by the four agencies in June that gave
lenders more flexibility in estimating the value of real estate collateral
when consistent with safe and sound banking practices. The amended
rule reduced the number of loans requiring a real estate appraisal by a
certified or licensed appraiser and simplified the appraisal standards to
be used. The new guidelines also describe the appropriate application of
July amendments to the Uniform Standards of Professional Appraisal
Practice that allowed additional appraisal options. Those amendments
were adopted by the Appraisal Standards Board of the Appraisal
Foundation. The new interagency document supercedes each of the
agencies' appraisal and evaluation guidelines issued in 1992. Copies of
the guidelines, which are being sent to all FDIC-insured institutions and
to examiners, are available from the Office of the Comptroller of
Currency, the Federal Deposit Insurance Corporation, the Federal
Reserve Board and the Office of Thrift Supervision.
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