Current through Reg. 50, No. 187; September 24, 2024
(1) The board of
directors of each state financial institution shall adopt appraisal standards
and policies. Such standards and policies shall be reviewed and approved
annually by the board of directors and such approval shall be recorded in the
minutes of the meetings of the board of directors.
(2) At a minimum, the appraisal standards and
policies shall require that an appraisal prepared by a state-certified or
state-licensed appraiser must be obtained prior to funding any loan or
extension of credit that is based on the security of real estate, except:
(a) Loans with a total value of $400,000 or
less;
(b) Loans with a lien on real
property when such property has been taken as collateral solely in an abundance
of caution;
(c) When a lien on real
estate has been taken for purposes other than the real estate's
value;
(d) The transaction is a
business loan that:
1. Has a transaction value
of $1 million or less; and,
2. Is
not dependent on the sale of, or rental income derived from, real estate as the
primary source of repayment;
(e) A lease of real estate, unless the lease
is the economic equivalent of a purchase or sale of the leased real
estate;
(f) The transaction
involves an existing extension of credit at the lending institution, provided
that:
1. There has been no obvious and
material deterioration in market conditions or physical aspects of the property
that would threaten the institution's collateral protection after the
transaction, even with the advancement of new monies; or
2. There is no advancement of new monies,
other than funds necessary to cover reasonable closing
costs;
(g) The
transaction involves the purchase, sale, investment in, exchange of, or
extension of credit secured by, a loan or interest in a loan, pooled loans, or
interests in real property, including mortgage-backed securities, and each loan
or interest in a loan, pooled loan, or real property interest met these
appraisal requirements at the time of origination;
(h) The transaction is wholly or partially
insured or guaranteed by a United States government agency or United States
government-sponsored agency; or
(i)
The transaction either:
1. Qualifies for sale
to a United States government agency or United States government-sponsored
agency; or
2. Involves a
residential real estate transaction in which the appraisal conforms to the
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation
appraisal standards applicable to that category of real
estate.
(3) Any
loan or extension of credit not requiring a state-certified or state-licensed
appraisal under paragraphs (2)(a), (d), or (f) shall not be funded until an
appropriate evaluation of the real property has been obtained; and,
(4) Any appraisal report or other evaluation
shall be certified to the financial institution and dated within one year prior
to funding the loan or extension of credit.
Rulemaking Authority 655.012(2), 655.60(2) FS. Law
Implemented 655.60 FS.
New 11-2-92, Amended 9-27-94, 11-7-01, Formerly 3C-100.600,
Amended 1-18-21.
