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FEDERAL RESERVE BANK OF NEW YORK [ Circular No. 10509 January 16, 1992 ”1 REAL ESTATE APPRAISAL STANDARDS Effective Date for Regulatory Compliance Changed to December 31, 1992 To All State Member Banks and Bank Holding Companies in the Second Federal Reserve District, and Others Concerned: In July 1990, the Board of Governors of the Federal Reserve System amended its Regulation H , “Membership of State Banking Institutions in the Federal Reserve System ,” and its Reg ulation Y, “Bank Holding Companies and Change in Bank Control,” in order to make mandatory the use of State-licensed or State-certified appraisers in real estate transactions by federally regulated financial institutions. Those amendments were sent to you with our Circular No. 10362, dated July 24, 1990. The effective date of the amendment was July 1, 1991, later extended to December 31, 1991. In accordance with the Federal Deposit Insurance Corporation Improvement Act of 1991, the Board of Governors has deferred the effective date of the amendments from December 31, 1991 to December 31, 1992. Following is the text of the Board’s announcement: The Federal Reserve has announced a delay in the effective date of its real estate appraisal regulation regarding the mandatory use of State-licensed or certified appraisers in federally related transactions for financial institutions regulated by the Board. The change in the effective date to December 31, 1992 conforms to recent amendments made by the Federal Deposit Insurance Corporation Improvement Act of 1991 to the real estate appraisal provi sions contained in Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). Any requirements of State law regarding the use of certified or licensed appraisers remain unaffected by the Board’s action. Printed on the reverse side is the text of the B oard’s notice, as reprinted from the Federal Register of January 2, 1992. Questions regarding this m atter may be directed to D onald E. Schm id, M anager of our Dom estic Banking D epartm ent (Tel. No. 212-720-6611). E. G erald C o r r ig a n , President. (OVER) Supervisory Financial Analyst (202/4522629), or Virginia M. Gibbs, Senior 12 CFR Parts 208 and 225 Financial Analyst (202/452-2521), Division of Banking Supervision and (Docket No. R-0685] Regulation; or Michael J. O’Rourke, Regulation H, Regulation Y— Appraisal Senior Attorney (202/452-3288), Legal Division. For the hearing impaired only, Standards for Federally Related Telecommunications Device for the Deaf Transactions (TDD), contact Dorthea Thompson (202/ AGENCY: Board of Governors of the 452-3544). Federal Reserve System. SUPPLEMENTARY INFORMATION: Pursuant ACTION: Final Rule; Revision of to Title XI of the Financial Institutions Compliance Date. Reform, Recovery, and Enforcement Act of 1989 (“FIRREA"), 12 U.S.C. sections SUMMARY: The Board published a final 3310, 3331-3351, the Board adopted a rule at page 27762 of the issue for final rule regarding Appraisal Standards Thursday, July 5, 1990 (FR Doc. 90For Federally Related transactions (12 15401), that contains a compliance date of July 1,1991, regarding the use of state CFR parts 208 and 225) on June 27,1990. The Board’s rule contains two certified or licensed appraisers in compliance dates: the compliance date federally related transactions. That of August 9,1990, for adherence to compliance date is being revised by the Board to December 31,1992, in response minimal appraisal standards, and the compliance date of July 1,1991 to section 472 of the Federal Deposit Insurance Corporation Improvement Act (subsequently extended to December 31, 1991), for the use of state certified or of 1991. licensed appraisers. Title XI’s provisions DATES: Effective Date: January 2,1992. regarding the mandatory use of state Compliance Date: State certified or certified or licensed appraisers was licensed appraisers, as appropriate, amended by section 472 of the Federal must be used for federally related Deposit Insurance Corporation transactions by December 31,1992. Improvement Act of 1991. (Pub. L. No. FOR FURTHER INFORMATION CONTACT. 102-242, Section 472,105 Stat. 2236, 2386) Roger T. Cole, Assistant Director (202/ (December 19,1991). That amendment 452-2618), Stanley B. Rediger, changed the compliance date in Section FEDERAL RESERVE SYSTEM 1119(a) of Title XI regarding the mandatory use of certified or licensed appraisers in federally related transactions from “not later than July 1. 1991, " to “not later than December 31, 1992. " To reflect the change contemplated by the amendment to Title XI of FIRREA, the Board is revising the compliance date in its appraisal regulation regarding the mandatory use of state certified or licensed appraisers in federally related transactions to December 31,1992. The impact of this amendment on financial institutions regulated by the Board is that the Board's regulatory requirements regarding the mandatory use of state certified or licensed appraisers in federally related transactions will not be effective until December 31,1992. Under section 472’s amendment to Title XI, however, states remain free to adopt their own implementation date for state appraiser licensing and certification requirements prior to December 31,1992. (12 U.S.C. 321; 12 U.S.C. 1844(b); 12 U.S.C. 3339, 3340.) Board of G overnors of the Federal Reserve System . D ecem ber 26,1991. William W. Wiles, Secretary o f the Board. [FR Doc. 91-31287 Filed 12-31-91; 8:45 am) BILLING CODE 6210-01-F PRINTED IN NEW YORK, FROM FEDERAL REGISTER, VOL. 57, NO. 1, p. 6
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