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Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

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Financial Institution Letters

Residential Tract Development Lending
Frequently Asked Questions
September 8, 2005

Summary: The federal banking, thrift and credit union regulatory agencies are issuing the attached frequently asked questions (FAQs) on residential tract development lending. The FAQs will assist institutions in complying with the agencies’ appraisal and real estate lending requirements for residential tract developments.


The attached document addresses common questions about appraisal and real estate lending requirements for financing residential construction in a tract development.

Institutions should review these FAQs in conjunction with the following:

FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Chief Appraiser
Legal Counsel

Related Topics:
Part 323 – Appraisal Regulations
Interagency Appraisal and Evaluation Guidelines
Part 365 – Real Estate Lending Regulations
Interagency Guidelines for Real Estate Lending Policies

Frequently Asked Questions on Residential Tract Development

Frequently Asked Questions on Residential Tract Development - PDF 99k (PDF Help)

Examination Specialist James Leitner at or (202) 898-6790

Printable Format:
FIL-90-2005 - PDF 32k (PDF Help)

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at

To receive FILs electronically, please visit

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).

Last Updated 09/08/2005

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