Commonly Asked Questions (AO-30)

1.

How do the assignment conditions that apply to appraisals for use by a federally regulated financial institution affect the appraiser’s scope of work and report content?

An appraiser accepting an assignment to be performed under the agencies’ appraisal regulations and guidelines is obligated to complete that assignment in a manner that adheres to the applicable appraisal regulations and guidelines.

2.

What is a “real estate-related financial transaction”?

The term is defined in Title XI of FIRREA and the agencies’ appraisal regulations as “any transaction involving —

(1)

The sale, lease, purchase, investment in or exchange of real property, including interests in property, or the financing thereof; or

(2)

The refinancing of real property or interests in real property; or

(3)

The use of real property or interests in property as security for a loan or investment, including mortgage-backed securities.”

3.

What is a “federally related transaction”?

The term is defined in Title XI of FIRREA as “any real estate-related financial transaction which —

(A)

a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates; and

(B)

requires the services of an appraiser.”

The agencies’ appraisal regulations define when the services of an appraiser are required. The agencies’ appraisal regulations also list specific categories of transactions that do not require the services of an appraiser.

4.

Do the agencies’ appraisal regulations apply to FHA, VA, Fannie Mae, Freddie Mac, Farmer Mac, or Sallie Mae?

FHA, VA, Fannie Mae, Freddie Mac, Farmer Mac and Sallie Mae are not under the supervision of the federal financial institutions regulatory agencies and therefore are not subject to their appraisal regulations.