FFIEC proposes amendments to temporary waiver proceedings
On January 13, the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC) published a request for comments on proposed amendments to provide greater transparency and clarity to the existing rules of practice and procedure governing temporary waiver proceedings. The existing temporary waiver proceedings, which were promulgated in 1992 under FIRREA, allow temporary waivers to be granted if a state appraiser regulatory agency makes a written determination that a scarcity of state-certified or licensed appraisers in a state or geographical area is causing significant delays in the performance of real estate appraisals utilized in connection with federally related transactions. Temporary waivers terminate once the ASC determines that the significant delays have been eliminated.
The FFIEC’s notice of proposed rulemaking (NPRM) seeks “to clarify the procedural differences in processing a Request for Temporary Waiver accompanied by a written determination as compared to a Petition requesting the ASC exercise its discretion to initiate a temporary waiver proceeding.” Among other things, the NPRM would allow the ASC to draw a clear distinction between: (i) a state appraiser regulatory agency’s request that is accompanied by a written determination (referred to in the NPRM as a “Request for Temporary Waiver”); and (ii) information received from other persons or entities, which could include a state appraiser regulatory agency (referred to as a “Petition”). As presented in the NPRM’s accompanying flowchart, the procedures will vary depending on whether the ASC has received a Request for Temporary Waiver or a Petition requesting the initiation of a temporary waiver proceeding. Comments on the NPRM must be received by March 14.