This isn’t just a business—it’s a reflection of what we believe in. We’re here to create work that matters, led by a shared commitment to quality and care. Rest assured that your product will be in compliance with all legal and quality standards. Each evaluation report is done with pride and experience from the bottom of our hearts. Providing accurate and up to date market value opinions helps perpetuate a stable economy in America. As a company we are confident that our customers will be satisfied with our service.
F.D.I.C Interagency Evaluation Guidelines:(for bank transactions)
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F.D.I.C Interagency Evaluation Guidelines:(for bank transactions) *
Core Requirements
For a bank to use a third-party real estate evaluation to determine the market value of a property, the FDIC and the Interagency Appraisal and Evaluation Guidelines require that the third party be strictly competent, independent, and separate from the loan process.
If the transaction qualifies for an evaluation (rather than a full, certified appraisal), the bank must ensure the third party meets these standards:
• Independence: The person or firm performing the evaluation must have no direct, indirect, or prospective financial interest in the property or transaction.
• Loan Production Firewall: The third party must be totally independent of the bank's loan production staff (e.g., loan officers). They cannot be pressured or influenced by the people making the loan decision.
• Competency and Knowledge: The third party must be qualified, competent, and have knowledge of the local real estate market where the property is located.
• Reliable Value Estimate: The evaluation must provide a reliable market value estimate using standard valuation approaches (such as a sales comparison or income approach) and contain enough information to support the credit decision.
Key Differences from Appraisals
Understanding the difference between an evaluation and an official appraisal helps clarify these rules:
• No License Required: Evaluations are not required to be completed by a state-licensed or certified appraiser.
• No USPAP Requirement: Evaluations do not have to strictly comply with the Uniform Standards of Professional Appraisal Practice (USPAP).
• Bank Oversight: The bank remains responsible for ensuring the evaluation is sound and accurate. The bank must have strict internal policies to select, evaluate, and monitor the performance of these third-party preparers.
F.D.I.C Interagency Evaluation Guidelines:(for bank transactions)
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F.D.I.C Interagency Evaluation Guidelines:(for bank transactions) *
Transactions That Require Evaluations The Agencies’ appraisal regulations permit an institution to obtain an appropriate evaluation of real property collateral in lieu of an appraisal for transactions that qualify for certain exemptions.
These exemptions include a transaction that:
• Has a transaction value equal to or less than the appraisal threshold of $400,000.(residential homes)
• Is a (business) loan with a transaction value equal to or less than the business loan threshold of $1 million, and is not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment.
• Involves an existing extension of credit at the lending institution, provided that:
There has been no obvious and material change in market conditions or physical aspects of the property that threaten the adequacy of the institution’s real estate collateral protection after the transaction, even with the advancement of new monies; or
There is no advancement of new monies other than funds necessary to cover reasonable closing costs.