Dec
03

Fed Official Stresses “Sound Appraisal Practices” Amidst CRE Woes

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The proposed revisions to the Interagency Appraisal and Evaluation Guidelines are expected to be finalized in the coming months, according to a Federal Reserve official, who told Congress the guidelines “reinforce the importance of sound appraisal practices.”

In testimony before the House Financial Services Committee’s Subcommittee on Oversight and Investigations on Nov. 30 , Jon Greenlee, associate director of the division of bank supervision and regulation, reported that U.S. banks continue to face significant challenges, particularly from rising delinquencies in commercial real estate and commercial loans.

“Prudent real estate lending depends upon reliable and timely information on the market value of the real estate collateral,” Greenlee said. “This has been a cornerstone of the regulatory requirements for real estate lending and is reflected in the agencies’ appraisal regulations.”

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:
http://www.appraisalinstitute.org/ano/current.aspx?volume=10&numbr=23/24
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BLOG NOTE:
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Integra Realty Resources can assist lenders with setting up an effective appraisal process management program. Services include establishing a quality approved apppraiser list, writing your appraisal policy, procuring appraisals and reviewing appraisal reports. Call or e-mail me about our appraisal process management services.
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Michael Dodds, MAI, CCIM, MRICS

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