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 1994-03-01 monographic deposited born digital GA 1.13:T-GGD-94-102 https://www.govinfo.gov/app/details/GAOREPORTS-T-GGD-94-102 P0b002ee180387490 f:tgg94102 DGPO 2010-08-12 2011-03-28 GAOREPORTS-T-GGD-94-102 machine generated eng fdlp REPORT GAOREPORTS-T-GGD-94-102 T-GGD-94-102 Financial institutions Mortgage loans Real estate sales Appraisals Insured commercial banks Regulatory agencies Real property Loan defaults Banking regulation Certifying officers Testimony GGD This testimony focuses on the "de minimus" appraisal threshold--the dollar level that regulatory agencies have set for exempting real estate transactions of federally insured banks, thrifts, and credit unions from appraisal requirements. The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 requires that written appraisals, done by professionals and in compliance with uniform standards, be done for real estate transactions valued at more than $100,000. In June 1993, federal regulators proposed a rule change that would raise the threshold to $250,000, thereby reducing the number of transactions requiring appraisals, and substituting less formal evaluations. GAO discusses (1) the current appraisal legislation and requirements; (2) the proposed change in the threshold; (3) the arguments for and against the proposal; (4) the regulators' response to public comments; and (5) GAO's preliminary observations on the proposal's effect on valuations of real estate, deposit insurance funds, and consumers. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-GGD-94-102/html/GAOREPORTS-T-GGD-94-102.htm GAO/T-GGD-94-102 https://www.govinfo.gov/app/details/GAOREPORTS-T-GGD-94-102 Testimony GAO/T-GGD-94-102; Bank and Thrift Regulation: Observations on Proposed Changes to Appraisal Requirement; Financial institutions Mortgage loans Real estate sales Appraisals Insured commercial banks Regulatory agencies Real property Loan defaults Banking regulation Certifying officers