Real estate lending is subject to appraisal rules addressing both the valuation itself and the independence of the person performing it.

When an appraisal is required. Transactions above threshold amounts, with exemptions for smaller transactions, certain renewals without new money, and transactions insured or guaranteed by a government agency. Below the threshold, an evaluation is generally required — less formal but still requiring support.

Who may perform. State-certified or licensed appraisers, selected independently of the loan production function, with engagement by someone not compensated on loan closing.

Independence. Prohibitions on coercing, influencing or inducing a valuation outcome, on conditioning compensation on a value being reached, and on providing a target value. Communicating factual information and correcting errors is permitted; suggesting a value is not.

Reviews. Institutions must have a program for reviewing appraisals and evaluations for compliance with standards and for the reasonableness of assumptions, with the depth of review scaled to risk.

Consumer disclosure. Applicants must receive a copy of appraisals and valuations promptly on completion and no later than three business days before closing for covered transactions, with a waiver available on conditions.

Reappraisal in workouts and on material market changes, and the documentation of the decision not to reappraise.