| (a) Policies and Procedures. A credit union's board
of directors is responsible for reviewing and adopting policies and
procedures that establish and maintain an effective, independent real
estate appraisal and evaluation program. A credit union's selection
criteria for individuals who may perform appraisals or evaluations
must provide for the independence of the individual performing the
evaluation. That is, the individual has neither a direct nor indirect
interest, financial or otherwise, in the property or transaction.
The individual selected must also be competent to perform the assignment
based upon the individual's qualifications, experience, and educational
background. An individual may be an employee of a credit union if
the individual qualifies under the conditions and requirements contained
in Part 722 of the National Credit Union Administration Rules and
Regulations.
(b) Loans Over $400,000. For real estate loans in which
the loan amount or extension of credit exceeds $400,000, the credit
union shall obtain a professional appraisal report by a state certified
or licensed appraiser. The appraisal report shall be in writing and
conform to generally accepted appraisal standards as evidenced by
the Uniform Standards of Professional Appraisal Practice promulgated
by the Appraisal Standards Board of the Appraisal Foundation, in Washington,
D.C.
(c) Loans $400,000 or Less. For real estate loans with
a loan amount or extension of credit of $400,000 or less, the services
of a state certified or licensed appraiser is not necessary; however,
the credit union must obtain an appropriate evaluation of real property
collateral that is supported by a written estimate of market value
either performed by a qualified individual who has demonstrated competency
in performing evaluations or from tax appraisal data of a governmental
entity.
(d) Right to Require an Appraisal. The commissioner
may require an appraisal under this section, at the expense of the
credit union, when the commissioner has reasonable cause to believe
the value of the collateral is overstated.
(e) Existing Loans. In the case of renewal of a loan
where there has been no obvious and material change in market conditions
or physical aspects of the property that threatens the adequacy of
the credit union's real estate collateral protection after the transaction,
even with the advancement of additional funds, a written certification
of current value by the original appraiser or an acceptable substitute
shall satisfy this section.
(f) Other Appraisal Requirements. A credit union shall
also comply with applicable real estate appraisal requirements contained
within Part 722 of the National Credit Union Administration Rules
and Regulations.
|
| Source Note: The provisions of this §91.708 adopted to be effective August 9, 1999, 24 TexReg 6023; amended to be effective August 11, 2002, 27 TexReg 6834; amended to be effective August 10, 2003, 28 TexReg 6267; amended to be effective November 9, 2006, 31 TexReg 9018; amended to be effective November 7, 2010, 35 TexReg 9720; amended to be effective August 30, 2020, 45 TexReg 5906 |
