Availability of Appraisers

Earlier this month, the banking brotherhood, including the NCUA, released an Interagency Advisory or the Availability of Appraisers.

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) requires NCUA to establish appraisal standards for all federally related transactions. Part 722 of NCUA’s regulations provides these standards. Generally, the rules require the appraisal to be performed by a state-certified or state-licensed appraiser. Whether the appraiser needs to be certified or licensed depends on the type of transaction involved. The Interagency Appraisal and Evaluation Guidelines provide an overview of the applicable rules and guidance on developing an appraisal program, choosing an appraiser, and obtaining and reviewing appraisals.

The Advisory explains a credit union’s options in the event a certified or licensed appraiser is not available. In certain situations, the FIRREA permits credit unions to use appraisers who have obtained a temporary practice permit or a temporary waiver instead of a state certificate or license. The Advisory explains both the permit and the waiver.