(a) Authority. This subpart is issued by the Board of Governors of the Federal
Reserve System (the “Board”) under title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (Pub. L. No.
101-73, 103 Stat. 183 (1989)), 12 U.S.C. 3310, 3331-3351, and section
5(b) of the Bank Holding Company Act, 12 U.S.C. 1844(b).
(b) Purpose and scope.
(1) Title XI provides protection for federal
financial and public-policy interests in real estate-related transactions
by requiring real estate appraisals used in connection with federally
related transactions to be performed in writing, in accordance with
uniform standards, by appraisers whose competency has been demonstrated
and whose professional conduct will be subject to effective supervision.
This subpart implements the requirements of title XI, and applies
to all federally related transactions entered into by the Board or
by institutions regulated by the Board (“regulated institutions”).
(2) This subpart—
(i) identifies which
real estate-related financial transactions require the services of
an appraiser;
(ii) prescribes
which categories of federally related transactions shall be appraised
by a state-certified appraiser and which by a state-licensed appraiser;
and
(iii) prescribes minimum
standards for the performance of real estate appraisals in connection
with federally related transactions under the jurisdiction of the
Board.
