Appraisals

The value of the collateral securing the loan is a significant risk factor in real estate lending, so it is essential for banks to have adequate appraisal and evaluation programs in place. Appraisals are professional judgments of the market value of real property based on a variety of market factors. You will find the standards for real estate lending and associated activities by national banks in Real Estate Lending and Appraisals (12 CFR 34). See COVID-19 Resources for Appraisals and Evaluations.

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OCC Bulletin 2020-83, Real Estate Appraisals: Final Rule
Published a final rule that provides temporary deferral of requirements for appraisals and evaluations under the agencies' appraisal regulations. Clarifies that transactions for the acquisition, development, and construction of real estate are excluded from the 120-day deferral period. The final rule applies to all OCC-supervised banks and expires on December 31, 2020.

OCC Bulletin 2019-45, Appraisals for Residential Real Estate Transactions: Final Rule
Explains that the OCC has adopted a final rule to increase appraisal threshold for residential real estate transactions (residential transactions) from $250,000 to $400,000.

OCC Bulletin 2019-43, Appraisals: Appraisal Management Company Registration Requirements
Discusses concerns that banks might have confirming AMC registration, and makes suggestions that banks can use when no registered AMCs are available.

OCC Bulletin 2018-39, Appraisals and Evaluations of Real Estate: Frequently Asked Questions
Clarifies regulatory and statutory requirements relating to appraisals and evaluation, appraisal and evaluation review by financial institutions, and appraisal independence

OCC Bulletin 2018-10, Exempt Commercial Real Estate Transactions: Final Rule
Discusses raising the commercial real estate appraisal threshold from $250,000 to $500,000 and the exemption of an appraisal requirement

Appraisal Management Company Registry Fees; Final Rule (Federal Register September 25, 2017)
Published federal regulations for establishing AMC registry fees for States electing to register and supervise AMCs

OCC Bulletin 2017-19, Appraiser Shortages: Interagency Advisory on the Availability of Appraisers
Discusses two existing options to help insured depository institutions address appraiser shortages, particularly in rural areas

OCC Bulletin 2016-8, Real Estate Lending: Interagency Advisory on the Use of Evaluations in Real Estate-Related Financial Transactions
Describes existing supervisory expectations, guidance, and industry practice for using evaluations instead of appraisals when estimating market value of real property securing real estate-related financial transactions

Appraisal Management Company Rule Final Rule (Federal Register June 9, 2015)
Published federal regulations minimum requirements for State registration and supervision of appraisal management companies

OCC Bulletin 2010-42, Sound Practices for Appraisals and Evaluations: Interagency Appraisal and Evaluation Guidelines
Describes the elements of a sound program for conducting appraisals and evaluations and addresses supervisory matters related to real estate appraisals and evaluations used to support real estate-related financial transactions.

OCC Bulletin 2005-32, Frequently Asked Questions: Residential Tract Development Lending
Addresses appraisal and real estate lending requirements for financing residential tract developments