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Supervisory Insights

Winter 2011 Vol. 8, Issue 2 - Table of Contents

Last Updated: May 10, 2023

Supervisory Insights - Winter 2011 - PDF

Letter from the Director


Navigating the Real Estate Valuation Process

Effective real estate collateral valuation policies and practices are a critical component of a real estate lending program and help minimize losses when collateral becomes the primary repayment source. To clarify supervisory expectations for prudent real estate appraisals and evaluations, the federal financial institution regulatory agencies issued the Interagency Appraisal and Evaluation Guidelines (Guidelines) in December 2010. This article highlights certain aspects of the Guidelines and provides information for bankers regarding sound practices for banks’ real estate valuation processes in the areas of valuation review, independence, content standards, preparer selection, and monitoring.

Mobile Banking: Rewards and Risks

Mobile banking is a relatively new banking service that is rapidly gaining popularity with consumers and businesses. However, as is the case with any new service, mobile banking presents unique risks. This article discusses the technologies used to deliver mobile banking services, identifies the risks to financial institutions and consumers, and describes strategies for mitigating these risks.

Regular Features

Regulatory and Supervisory Roundup

This feature provides an overview of recently released regulations and supervisory guidance.

Supervisory Insights

Supervisory Insights is published by the Division of Risk Management Supervision of the Federal Deposit Insurance Corporation to promote sound principles and best practices for bank supervision.

Martin J. Gruenberg
Acting Chairman, FDIC

Sandra L. Thompson
Director, Division of Risk Management Supervision

Journal Executive Board

Division of Risk Management Supervision
George E. French, Deputy Director and Executive Editor
Christopher J. Spoth, Senior Deputy Director
Victor J. Valdez, Deputy Director
James C. Watkins, Deputy Director

Division of Depositor and Consumer Protection
Sylvia H. Plunkett, Senior Deputy Director
Jonathan N. Miller, Deputy Director
Robert W. Mooney, Deputy Director

Regional Directors
Thomas J. Dujenski, Atlanta Region
Doreen R. Eberley, New York Region
Kristie K. Elmquist, Dallas Region
Stan R. Ivie, San Francisco Region
James D. LaPierre, Kansas City Region
M. Anthony Lowe, Chicago Region

Journal Staff

Kim E. Lowry
Managing Editor

Jane Coburn
Financial Writer

Estela R. Gauna
Financial Writer

Supervisory Insights is available online by visiting the FDIC’s website at To provide comments or suggestions for future articles, request permission to reprint individual articles, or to request print copies, send an e-mail to

The views expressed in Supervisory Insights are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance Corporation. In particular, articles should not be construed as definitive regulatory or supervisory guidance. Some of the information used in the preparation of this publication was obtained from publicly available sources that are considered reliable. However, the use of this information does not constitute an endorsement of its accuracy by the Federal Deposit Insurance Corporation.