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Article: Appraisal reviews are important to safe banking.
- Article from:
- Financial Update
- Article date:
- October 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 www.frbatlanta.org. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Financial institutions must have an effective, independent real estate appraisal and evaluation program. This sort of program, which ensures the independence of the collateral valuation process, maintains safe and sound banking practices.
An institution's appraisal and evaluation review function should be independent from the loan production process. Further, staff conducting the reviews should have the knowledge and expertise to assess compliance with the Federal Reserve's appraisal regulations and guidelines. Though all appraisals need to be reviewed for compliance with appraisal regulations, guidelines, and professional standards, the stringency of the review ...