Appraisal Podcasts

As you may know, Title XI of FIRREA has a requirement for all federally related transactions that all appraisals must “analyze and report appropriate deductions and discounts for proposed construction or renovation, partially leased buildings, non-market lease terms, and tract developments with unsold units.” In September 2005, the five federal agencies jointly issued Frequently Asked Questions on Residential Tract Development Lending (FAQs) to assist financial institutions in complying with the agencies’ appraisal and real estate lending requirements for residential tract developments. The FAQs provide much needed clarification on this topic, but do not result in any new regulatory requirements. Specifically, the FAQs address how institutions should determine collateral value and calculate loan-to-value (LTV) for loans secured by tract development. A good friend, George Mann, MAI, SRA who is Chief Appraiser of Fifth Third Bank, co-authored (with Andy Luzod, MAI) an article for the RMA Journal and gave me permission to post the article here. Great reading to see this issue from a bank review appraisers perspective.

This entry was posted on Tuesday, January 24th, 2006 at 9:11 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.