United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1994-05-24 monographic deposited born digital GA 1.13:GGD-94-144 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-94-144 P0b002ee1803810d2 f:gg94144 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GGD-94-144 machine generated eng fdlp REPORT GAOREPORTS-GGD-94-144 GGD-94-144 Banking regulation Internal controls Lending institutions Regulatory agencies Appraisals Bank examination Auditing procedures Auditing standards Corporate audits Real property Letter Report GGD The de minimus appraisal threshold is the dollar level set by federal financial regulators to exempt real estate loans made by federally insured financial institutions from statutory appraisal requirements. To reduce regulatory burden and foster economic growth, federal banking and thrift regulators issued a proposed rule in June 1993 to raise the de minimus appraisal threshold from $100,000 to $250,000 for both residential and commercial real estate loans. For loans of $250,000 and below, financial institutions would be allowed to use a real estate evaluation instead of an appraisal. An evaluation is generally a simpler assessment of real estate market value made by individuals who need not be state licensed or certified. Some Members of Congress, consumer groups, and the appraisal industry have raised concerns that raising the de minimus appraisal threshold could harm the safety and soundness of financial institutions. They have also expressed concern about consumers' ability to be protected from and take action against questionable evaluation practices. This report assesses the regulatory guidance provided to financial institutions on evaluations, examination procedures provided to examiners on financial institutions' evaluation practices, and federal policies to protect consumers from questionable evaluation practices. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-94-144/html/GAOREPORTS-GGD-94-144.htm GAO/GGD-94-144 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-94-144 Letter Report GAO/GGD-94-144; Bank and Thrift Regulation: Better Guidance Is Needed for Real Estate Evaluations; Banking regulation Internal controls Lending institutions Regulatory agencies Appraisals Bank examination Auditing procedures Auditing standards Corporate audits Real property