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OCC Bulletin 2018-39 | October 16, 2018

Appraisals and Evaluations of Real Estate: Frequently Asked Questions


Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies of Foreign Banks; Department and Division Heads; All Examining Personnel; and Other Interested Parties


The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) are publishing answers to frequently asked questions (FAQ) concerning appraisals and evaluations for real estate transactions that are covered by the interagency appraisal rules (12 CFR 34, subpart C). These FAQs clarify existing regulatory requirements and guidance provided in the 2010 Interagency Appraisal and Evaluation Guidelines and in the 2016 Interagency Advisory on Use of Evaluations in Real Estate-Related Financial Transactions. These FAQs are the agencies' interpretations of existing rules and guidance based on the facts and circumstances presented in the questions. These FAQs are not official rules or regulations.

In March 2005, the agencies issued FAQs concerning the appraisal regulations.1 The agencies are rescinding the 2005 FAQs document but are incorporating some of the FAQs into this new FAQs document. Many of the other 2005 FAQs were addressed directly in the 2010 Interagency Appraisal and Evaluation Guidelines and, therefore, have not been included in this new FAQ document.

Note for Community Banks

These FAQs apply to all OCC-supervised banks.


These FAQs address the following topics:

  • Regulatory and statutory requirements relating to appraisals and evaluations.
  • Review of appraisals and evaluations by financial institutions.
  • Exemptions in the appraisal rule concerning abundance of caution, use of existing appraisals in subsequent transactions, and qualifying business loans.
  • Development of appraisals and evaluations.
  • Appraisal independence.

Further Information

Please contact G. Kevin Lawton, Appraiser and Real Estate Specialist, (202) 649-6670; Mitchell E. Plave, Special Counsel, Legislative and Regulatory Activities Division, (202) 649-5490; or Joanne Phillips, Counsel, Bank Activities and Structure Division, (202) 649-5500.


Grace E. Dailey
Senior Deputy Comptroller for Bank Supervision Policy and Chief National Bank Examiner

Related Link

1 The OCC is rescinding OCC Bulletin 2005-6, "Appraisal Regulations and the Interagency Statement on Independent Appraisal and Evaluation Functions: Frequently Asked Questions."