AI Guide Note 13 Helps Appraisers Prepare Evaluations for Lenders
The Appraisal Institute published “Guide Note 13: Performing Evaluations of Real Property Collateral for Lenders” Nov. 14 to help appraisers understand how to prepare evaluations for lenders and comply with the Uniform Standards of Professional Appraisal Practice.
For lending transactions involving real estate, lenders must obtain an appraisal from a state licensed or certified appraiser. However, there are 12 exemptions from this requirement, and three of those exemptions allow a lender to obtain an evaluation in lieu of an appraisal. An evaluation provides a market value of the real estate collateral.
The challenge for the appraiser is how to prepare an evaluation while complying with the Uniform Standards of Professional Appraisal Practice.
The new guidance explains what evaluations are and addresses such topics as how they’re used, who can prepare them, an overview of their reporting requirements and how to prepare them in compliance with USPAP.
Download Guide Note 13: Performing Evaluations of Real Property Collateral for Lenders.