(a) Appraisal means a written statement
independently and impartially prepared by a qualified appraiser setting
forth an opinion as to the market value of an adequately described
property as of a specific date(s), supported by the presentation and
analysis of relevant market information.
(b) Appraisal Foundation means the Appraisal Foundation established on November 30, 1987,
as a not-for-profit corporation under the laws of Illinois.
(c) Appraisal Subcommittee means the Appraisal Subcommittee
of the Federal Financial Institutions Examination Council.
(d) Business loan means a loan or extension of credit to any
corporation, general or limited partnership, business trust, joint
venture, pool, syndicate, sole proprietorship, or other business entity.
(e) Commercial real estate transaction means a real estate-related
financial transaction that is not secured by a single 1-to-4 family
residential property.
(f) Complex appraisal for a residential
real estate transaction means one in which the property to be
appraised, the form of ownership, or market conditions are atypical.
4-053.2
(g) Federally related transaction means any real estate-related
financial transaction entered into on or after August 9, 1990, that—
(1) the Board or any regulated
institution engages in or contracts for; and
(2) requires the services of an appraiser.
(h) Market value means the most probable price
which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each
acting prudently and knowledgeably, and assuming the price is not
affected by undue stimulus. Implicit in this definition is the consummation
of a sale as of a specified date and the passing of title from seller
to buyer under conditions whereby—
(1) buyer and seller are typically motivated;
(2) both parties are well informed
or well advised, and acting in what they consider their own best interests;
(3) a reasonable time is allowed for
exposure in the open market;
(4) payment
is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and
(5) the price represents the normal consideration for the property
sold unaffected by special or creative financing or sales concessions
granted by anyone associated with the sale.
4-053.3
(i) Real
estate or real property means an identified parcel or tract
of land, with improvements, and includes easements, rights-of-way,
undivided or future interests, or similar rights in a tract of land,
but does not include mineral rights, timber rights, growing crops,
water rights, or similar interests severable from the land when the
transaction does not involve the associated parcel or tract of land.
(j) Real estate-related financial transaction means any
transaction involving—
(1) the sale, lease, purchase, investment in or exchange of real
property, including interests in property, or the financing thereof;
or
(2) the refinancing of real property
or interests in real property; or
(3) the use of real property or interests in property as security
for a loan or investment, including mortgage-backed securities.
(k) Residential real estate transaction means
a real estate-related financial transaction that is secured by a single
1-to-4 family residential property.
4-053.4
(l) State-certified
appraiser means any individual who has satisfied the requirements
for certification in a state or territory whose criteria for certification
as a real estate appraiser currently meet or exceed the minimum criteria
for certification issued by the Appraiser Qualifications Board of
the Appraisal Foundation. No individual shall be a state-certified
appraiser unless such individual has achieved a passing grade upon
a suitable examination administered by a state or territory that is
consistent with and equivalent to the Uniform State Certification
Examination issued or endorsed by the Appraiser Qualifications Board
of the Appraisal Foundation. In addition, the Appraisal Subcommittee
must not have issued a finding that the policies, practices, or procedures
of the state or territory are inconsistent with title XI of FIRREA.
The Board may, from time to time, impose additional qualification
criteria for certified appraisers performing appraisals in connection
with federally related transactions within its jurisdiction.
(m) State-licensed appraiser means any individual
who has satisfied the requirements for licensing in a state or territory
where the licensing procedures comply with title XI of FIRREA and
where the Appraisal Subcommittee has not issued a finding that the
policies, practices, or procedures of the state or territory are inconsistent
with title XI. The Board may, from time to time, impose additional
qualification criteria for licensed appraisers performing appraisals
in connection with federally related transactions within the Board’s
jurisdiction.
4-053.5
(n) Tract development means a project of five units or
more that is constructed or is to be constructed as a single development.
(o) Transaction value means—
(1) for loans or other extensions of credit,
the amount of the loan or extension of credit;
(2) for sales, leases, purchases, and investments
in or exchanges of real property, the market value of the real property
interest involved; and
(3) for the
pooling of loans or interests in real property for resale or purchase,
the amount of the loan or the market value of the real property calculated
with respect to each such loan or interest in real property.
