For federally related transactions,(7) the federal regulatory agencies appraisal regulations include five minimum standards for the preparation of an appraisal:
That is because commentary from the agencies and the Appraisal Standards Board indicates that the utility of the Restricted Appraisal Report format for federally related transactions is limited.
Maintain a national registry of state licensed and state certified appraisers qualified to perform appraisals in federally related transactions (registry).
According to the August 1992 legislatively mandated De Minimis Study prepared by the OMB, "OMB does not recommend--at this time--a de minimis level higher than $100,000 for commercial federally related transactions .
However, for federally related transactions
, the definition of market value as stated in the final appraisal rules of the federal financial institutions regulatory agencies must be used.
In accordance with the provisions of Title XI, the FDIC's appraisal regulations 1) identify real estate-related financial transactions that require the services of an appraiser; 2) specify which categories of federally related transactions require appraisals performed by state certified appraisers and which categories of transactions may be conducted using appraisals performed by state licensed appraisers; and 3) prescribe minimum standards for real estate appraisals performed in connection with federally related transactions.
A state certified appraiser is required for all federally related transactions of $1,000,000 or more.
The court held that FIRREA included transactions below the de minimis level in its definition of federally related transactions
However, the GAO noted that "opportunities exist to enhance the effectiveness of the current regulatory system to help ensure that federally related transactions
are based on accurate assessments of the value of properties used as collateral for loans.
After the savings and loan collapse in the 1980s, Congress passed the Financial Institutions Reform, Recovery and Enforcement Act, creating the Resolution Trust Corporation and identifying federally related transactions