WASHINGTON -- The Federal Reserve announced last week that it was weighing new rules that would require financial institutions to hire certified appraisers to review real-estate related transactions worth more than $50,000.
Currently, state-chartered banks and other financial institutions must obtain appraisals in cases of real-estate related transactions above $100,000.
The Fed said it had set the $100,000 level after much discussion and in response to "concerns about increased costs and burdens imposed on small financial institutions and consumers seeking real estate loans."
Shortly after the Fed set the $100,000 level, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the Office of Thrift Supervision agreed that a $50,000 level would be more appropriate.
Fed Governor Martha Seger, who disagreed with the Fed's decision to reconsider the level, said credit losses stemming from inadequate appraisals have not been a "major cause of failures of commercial banking organizations."