Evaluation requirements.

CFR · 2024-01-01 · US · Title 12

(a) (b) (2) Appraisals for real estate-related financial transactions with transaction values of more than $1,000,000 shall be performed by a qualified appraiser who is a State certified real estate appraiser. (c) (1) The transaction value is $250,000 or less; (2) The transaction is a “business loan” as defined in § 614.4240(e) that: (i) Has a transaction value of $1,000,000 or less; and (ii) Is not dependent on income derived from the sale or cash rental of real estate as the primary source of repayment; (3) A lien on real property has been taken as collateral in an abundance of caution, and the application, when evaluated on the five basic credit factors, without considering the subject real estate, would support the credit decision that was based on other sources of repayment or collateral; (4) A lien on real estate is not statutorily required and has been taken for purposes other than the real estate's value; (5) Subsequent loan transactions (which include but are not limited to loan servicing actions, reamortizations, modifications of loan terms, and partial releases), provided that either: (i) The transaction does not involve the advancement of new loan funds other than funds necessary to cover reasonable closing costs; or (ii) There has been no obvious and material change in market conditions or physical aspects of the property that threatens the adequacy of the Farm Credit System institution's real estate collateral protection, even with the advancement of new loan fu

official document · source cfr-2024 · id 12:§ 614.4260