Federal agencies responded to concerns about the shortage of state-certified and -licensed appraisers Wednesday, saying that financial institutions have two options to help ease the timely consideration of loan applications.
The agencies said the concerns about the availability of qualified appraisers, particularly in rural areas, were raised during the Economic Growth and Regulatory Paperwork Reduction Act review process.
The Financial Institutions Reform, Recovery and Enforcement Act requires appraisals for federally related transactions to be performed by people who meet state certification or licensing requirements.
The first option to address the shortage, outlined in an advisory issued Wednesday, allows temporary practice permits that allow appraisers certified in one state to provide services in another state experiencing a shortage of appraisers, if state law allows it.
The advisory also outlined reciprocity in which one state allows appraisers that are certified in one state to obtain certification in another state without having to meet all the state’s licensing standards.
The second option sets aside requirements related to the certification or licensing individuals to perform appraisals in geographic areas where certain conditions are met. The temporary waivers may be granted when it is determined that a shortage of state certified appraisers has led to significant delays in obtaining an appraisal.
