The FDIC, the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision have come together for the first time since 1994 and issued a revised set of guidelines for all regulated institutions involved with real estate lending. Certified General Appraiser Dave Brown says, "This is a HUGE deal, if only for the fact that the first major guidance has not been revised in almost 15 years!"

Veros, a provider of collateral valuation technology, enterprise risk management and predictive analytics, has announced the release of a white paper entitled "Interagency Appraisal & Evaluation Guidelines: Insights into Understanding and Integrating the New Guidance." The white paper seeks to bring clarity to the expanded language in the Interagency Appraisal & Evaluation Guidelines (Guidelines) surrounding the concepts of appraisal requirements and appropriate use of evaluations including automated valuation model (AVM) usage and tools for other research. Originally written and published in 1994 and then revised in 2010, the Guidelines seek to maintain the integrity of appropriate standards of safety, due diligence and proper consideration in real transactions.

“The real estate and mortgage industries have experienced a constant evolution of technology development and legislative change that directly impact how appraisers do business, as well as how the value of residential properties are assessed,” said William E. King, director of valuation initiatives at Veros Real Estate Solutions. “It is critical that professionals have an accurate understanding of the new regulations to ensure compliance so that these industries can continue to function at optimum levels.”

At the core of the white paper is a reminder to readers that the five basic requirements established in the original 1994 Guidelines remain unchanged. The 2010 revisions to these requirements are for the purpose of broadening the knowledge base for industry professionals and increasing compliance. Additionally, the paper reiterates the importance of appraisal and evaluation independence by outlining how regulated institutions can achieve and maintain this independence for their collateral valuation programs.

Click here to download a copy of "Interagency Appraisal & Evaluation Guidelines: Insights into Understanding and Integrating the New Guidance."

Additional Reference: Download Highlights of the 2010 Interagency Appraisal Guidelines

For more information, visit www.veros.com.

Source: National Mortgage Professional and Veros.com