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Financial Institution Letter

Residential Tract Development Lending Frequently Asked Questions

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 

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

Additional Related Topics:

  • Part 323 – Appraisal Regulations
  • Interagency Appraisal and Evaluation Guidelines
  • Part 365 – Real Estate Lending Regulations
  • Interagency Guidelines for Real Estate Lending Policies
Last Updated: September 8, 2005