To All State Member Banks, Bank Holding Companies and Others  
    Concerned in the Second Federal Reserve District:

A Federal Reserve supervisory letter (SR 05-5) dated March 22, 2005, announces that the federal banking agencies issued a Frequently Asked Questions (FAQs) document in response to questions from federally regulated institutions about the agencies’ real estate regulations.

The FAQs address common questions on the requirements of the appraisal regulations and the October 2003 Interagency Statement on Independence of Appraisal and Evaluation Functions. The FAQ topics include:

• Selecting an appraiser
  
• Ordering an appraisal
  
• Accepting a transferred appraisal
  
• Reviewing appraisals
  
• Evaluation and other appraisal topics

FAQs document should be reviewed in conjunction with the agencies’ appraisal regulations dated October 27, 1994 and the joint statement dated October 28, 2003.

SR letter (05-5)  
FAQs on the Appraisal Regulations and the Interagency Statement on Independent Appraisal and Evaluation Functions  
Independent Appraisal and Evaluation Functions  
Interagency Appraisal and Evaluation Guidelines  

Contact:
Caroline T. Frawley
Vice President
Credit Risk Department
caroline.frawley@ny.frb.org

William L. Rutledge
Executive Vice President

Contact:
Public Affairs
(212) 720-6130
general.info@ny.frb.org