A request from TriStar Bank for a one-year waiver from the federal requirement to use certified appraisers in real estate transactions will be taken up by the Federal Financial Institutions Examination Council (FFIEC) Appraisal Subcommittee (ASC) during an open meeting April 23 at the Federal Reserve Board’s offices at 1801 K St., N.W., Washington, D.C.
TriStar Bank, with $272.5 million in assets, is a federally insured, state-chartered institution in Dickson, Tenn. It submitted its waiver request in November, citing an insufficient number of appraisers in the market, with appraisal turnaround time rising 82% and costs growing 23% since 2013.
In follow-up this January, the bank told the panel that not enough certified appraisers are entering the market and suggested a “pilot waiver from the requirements for certificate granting to generate interest in the appraisal profession.” It said the appraisal requirements haven’t led to improvements in property valuations; sought a waiver from the requirement for appraisals at loan renewal (it said the bank could determine when one is needed); and said transaction thresholds requiring the use of general certified appraisers are too low. On that last point, TriStar suggested that banks should be allowed to decide how to obtain property values for loan requests involving $1 million or less.
The ASC’s April 23 meeting on this request is scheduled to begin at 10 a.m. ET. Individuals interested in attending can send and email to meetings@asc.govby close of business four business days prior.