Under Title XI of FIRREA, the Agencies identify that certain real estate-related financial transactions do not require the services of an appraiser, but do require an Evaluation to determine market value. Transactions qualifying for this exemption include:
- Loan Transactions
- equal to or less than $250,000 for residential 1-to-4 family real estate;
- equal to or less than $500,000 for commercial investment real estate; or
- equal to or less than $1 million for commercial owner occupied real estate considered to be a business loan transactions , so long as the loan is not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment.
- Loan Renewal, Refinancing, and Other Subsequent Transactions, for any loan amount so long as it involves an existing extension of credit at the lending institution, provided that:
- there has been no obvious and material change in market conditions or physical aspects of the property that threaten the adequacy of the institution’s real estate collateral protection after the transaction, even with the advancement of new monies; or
- there is no advancement of new monies other than funds necessary to cover reasonable closing costs.
CES Evaluations are fully compliant with FIRREA and all Interagency guidelines, and are performed by CES’ own qualified, well trained and highly experienced Evaluators. Applying the most common relevant appraisal methodology, coupled by use of precision selected market data, our evaluators provide the most credible value conclusions achievable. CES Evaluations are cost effective and meaningful, and our Clients confirm that use of our Evaluations provide them with added confidence as well as effective cost savings.