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Under federal law and policy, many mortgage loan transactions can be originated using evaluations instead of appraisals. Over the last several years a number of new services and processes have been introduced to the marketplace to attempt to provide clients with alternatives to traditional appraisals. The driving factor in the development of these new products is to reduce cost and shorten the time that it takes for a client to obtain a real estate valuation. While these "alternative" valuation products are marketed under various names, the two primary types of products provided by real estate sales professionals are broker price opinions (BPOs) and comparative market analyses (CMAs). However, due to state appraiser licensing & certification laws the ability of a real estate broker or salesperson to render a BPO or a CMA is limited in many states to the real estate listing and sales process. Several states have enacted new laws to expand the ability for brokers and salespersons to render BPOs and CMAs. A few states have amended their state appraiser licensing laws to allow appraisers to perform evaluations without having to comply with USPAP.
Interagency Advisory on the Use of Evaluations in Real Estate-Related Financial Transactions (2016)
Interagency Appraisal and Evaluation Guidelines (2010)
Georgia "Evaluation Appraisal" Rules
Tennessee Attorney General Opinion Regarding Evaluations
Summary of State Laws Regarding Broker Price Opinions (BPOs)
BPO Talking Points
Delaware BPO Guidance
Georgia BPO Guidance
Memorandum from West Virginia Real Estate Commission
Nevada BPO Policy from Real Estate Commission
New Jersey BPO Advisory Opinion
Pennsylvania BPO Interpretation
Virginia BPO Guidance
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