2018 Appraisal FAQ 14 – Can a financial institution approve a real estate loan subject to receipt and review of an appraisal or evaluation, or must the appraisal or evaluation be obtained and reviewed prior to making the fin

Compliance > Lending > Appraisal Regulations & Interagency Stmt.
Q:  Can a financial institution approve a residential or commercial real estate loan subject to receipt and review of an appraisal or evaluation, or must the appraisal or evaluation be obtained and reviewed prior to making the final decision? 
 
A:   A financial institution may grant conditional approvals to prospective borrowers before obtaining an appraisal or evaluation.  However, a final credit decision or action should only occur after the financial institution receives, reviews, and accepts the appraisal or evaluation.
 
 
ADDITIONAL INFORMATION:
This can be found in the 2018 “Frequently Asked Questions on Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines,” which may be found here:
https://www2.occ.gov/news-issuances/bulletins/2018/bulletin-2018-39a.pdf
 

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