WASHINGTON (12/2/08)--The National Credit Union Administration (NCUA), along with federal bank and thrift regulators, proposed interagency appraisal and evaluation guidelines that outline supervisory expectations for sound real estate practices. The Credit Union National Association (CUNA) is asking credit unions to comment on the guidelines by Jan. 12. Comments are due to the agencies by Jan. 20. The guidelines are intended to clarify appropriate risk-management principles and internal controls for ensuring that real estate appraisals and other evaluations are reliable and support a real estate transaction. The proposed guidance would replace the 1994 Interagency Appraisal and Evaluation Guidelines and incorporate recent regulatory actions into the rules. The NCUA was not a party to the 1994 Guidelines. The new, more-detailed guidance would also reflect other changes in industry practices, uniform appraisal standards, and available technologies. It includes three appendices:
* One provides further clarification on real estate transactions that are exempt from the agencies’ appraisal regulations; * Another addresses acceptable evaluation alternatives, including the use of automated valuation models (AVMs); * The third appendix provides a glossary of terms.
Use the resource link below to read more about the joint-agency proposal and to read CUNA’s complete comment call.