Gordy Welch from Lighthouse Real Estate Services shares his perspective on real estate evaluations.
In their April 2018 updated guidance the (The agencies) “encourage financial institutions to make use of the following exceptions” related to (the use of) Evaluations and Validations. **
Transactions That Require Evaluations: December 2010 and April 2018 Interagency FDIC appraisal guidelines permit an institution to obtain an appropriate evaluation of real property collateral in lieu of an appraisal for transactions that qualify for certain exemptions.
- Has a transaction value equal to or less than the appraisal threshold of $500,000.**
- 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.*
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