2018 Appraisal FAQ 23 – How can a financial institution confirm appraiser independence when accepting an appraisal prepared for another financial services institution?

Compliance > Lending > Appraisal Regulations & Interagency Stmt.
Q:  How can a financial institution confirm appraiser independence when accepting an appraisal prepared for another financial services institution?
 
A:   Documentation (such as an engagement letter) should be available to indicate that the financial services institution (not the borrower) ordered the appraisal and that the appraiser has no direct or indirect interest, financial or otherwise, in the property or the transaction.  The original lender’s engagement letter to the appraiser should be included in the credit file.58  For transactions subject to the IFR on Valuation Independence, an institution’s documentation should be available to indicate that the requirements of that rule are met.  
 
58 Valuation Guidelines, section VI.
 
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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