NCUA and other federal regulators issued an advisory Wednesday highlighting 2 appraiser options to help insured depository institutions facilitate timely consideration of loan applications. During the review process mandated by the Economic Growth and Regulatory Paperwork Act, financial industry representatives raised issues attributed to limited availability of state-certified and licensed appraisers.
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) requires appraisals for federally related transactions to be performed by individuals who meet certification licensing requirements.
According to federal regulators, alternatives that may help in areas facing a shortage of appraisers include:
Temporary practice permits, which allow appraisers credentialed in one state to provide services on a temporary basis in another state experiencing a shortage of appraisers, subject to state law. The advisory also discusses reciprocity, in which one state allows appraisers that are certified or licensed in another state to obtain certification or licensing without having to meet all of the state’s certification or licensing standards; or
Temporary waivers, which set aside requirements relating to the certification or licensing of individuals to perform appraisals in states or geographic political subdivisions where certain conditions are met. Temporary waivers may be granted when it is determined that there is a scarcity of state-certified or -licensed appraisers leading to significant delays in obtaining an appraisal.