Appraisal or evaluation? A look at the rules

Description

Abstract: When valuing real estate in connection with lending transactions, banks often hesitate to rely on evaluations in lieu of appraisals — even though they can be quicker and more cost-effective. That’s usually because they fear criticism from examiners. This article looks at the federal banking agencies’ regulations and notes the circumstances under which the rules permit using evaluations as part of an appropriate real estate valuation program.