During the recent Oklahoma Bankers Association visit to Washington, DC, Federal Reserve Board Deputy Director Maryann Hunter described options available to financial institutions dealing with appraiser shortages and difficulty getting timely appraisals. Ms. Hunter explained that the federal appraisal laws allow for a temporary waiver of the appraiser certification and licensing requirements – thereby giving institutions access to more individuals eligible to complete the required appraisals.
In order to obtain a temporary waiver, the requesting bank must provide evidence of the shortage of appraisers in the area and must demonstrate that the scarcity of appraisers has led to significant delays in the performance of appraisals in that area. If the waiver is granted, the requirement to use a certified or licensed appraiser would be waived for all regulated institutions engaging in federally related transactions in the affected geographic area, regardless of who initially requested the waiver.
A waiver request must include information such as
- A description of all significant problems currently being encountered in efforts to comply with the appraisal requirement;
- The nature of the scarcity of certified or licensed appraisers;
- The extent of the delays experienced in obtaining the services of certified or licensed appraisers;
- The reasons why the requester believes that the requirement or requirements are causing the scarcity of certified or licensed appraisers and the service delays.
The complete regulatory procedure for requesting a waiver may be found at Title 12 Code of Federal Regulations, Part 1102. 12 CFR Part 1102
pictured above: Federal Reserve Board Deputy Director Maryann Hunter and Oklahoma Bank Commissioner Mick Thompson
