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FRT's in Florida

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by incognito, Oct 1, 2007.

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  1. incognito

    incognito Senior Member

    0
    Jul 14, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    I know this has been beat to death, but I'm still a little vague. I am trying to determine what an FRT REALLY is. I searched and read hundreds of posts, and a consensus seems to be that loans by FNMA, VA and FHA are not FRT's.

    Then I come with this:
    http://myflorida.com/dbpr/re/documents/temporary_practice_appraiser_package.pdf
    As defined by Florida Statute 475.611(j),

    That states:

    a “federally related transaction” means any real estate related financial transaction that a federal financial institution’s regulatory agency or the Resolution Trust Corporation engages in, contracts for or regulates, which requires the services of a state licensed or state-certified appraiser.
    The regulatory agencies are:
    Board of Governors of the Federal Reserve System
    Department of Housing & Urban Development (HUD)
    Federal Deposit Insurance Corporation (FDIC)
    National Credit Union Administration
    Office of the Comptroller of the Currency
    Office of Thrift Supervision
    Resolution Trust Corporation
    Freddie Mac
    Fannie Mae

    So, anything, at least in Florida done for any type of non-private loan, exclusive of VA(?) is an FRT?
     
  2. Mark to market

    Mark to market Junior Member

    0
    Nov 14, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    FHA, VA,Fanne Mae, Freddie Mac, Farmer Mac, and Salle Mae are not on the list.
     
  3. Joyce Potts

    Joyce Potts Elite Member

    6
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    You'd think with all those governmental agencies in place there'd be adquate oversight that would have prevented the current mortage meltdown.

    So my question is--wha hapen?
     
  4. Chris Colston

    Chris Colston Elite Member

    0
    Jul 24, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    As defined by Florida Statute 475.611(j),

    That states:

    a “federally related transaction” means any real estate related financial transaction that a federal financial institution’s regulatory agency or the Resolution Trust Corporation engages in, contracts for or regulates, which requires the services of a state licensed or state-certified appraiser.
    The regulatory agencies are:
    Board of Governors of the Federal Reserve System
    Department of Housing & Urban Development (HUD)
    Federal Deposit Insurance Corporation (FDIC)
    National Credit Union Administration
    Office of the Comptroller of the Currency
    Office of Thrift Supervision
    Resolution Trust Corporation
    Freddie Mac
    Fannie Mae

    Looks to me like they are on the list.
     
  5. Howard Klahr

    Howard Klahr Senior Member

    74
    Oct 4, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Florida Statute 475.611(l) states the following (j is an incorrect reference):

    "Federally related transaction" means any real estate-related financial transaction which a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates, and which requires the services of a state-licensed or state-certified appraiser."

    Florida State Statutes 475.611 Definitions

    FIRREA in fact is the source for defining the term Federally Related Transaction and it states the following:

    "The term "federally related transaction" means any real estate-related
    financial transaction which —
    (A) a federal financial institutions regulatory agency or the Resolution Trust Corporation engages
    in, contracts for, or regulates; and
    (B) requires the services of an appraiser."


    and goes on further to define Federal financial institutions regulatory agencies as follows:

    "The term "Federal financial institutions regulatory agencies" means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporations, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration."

    FIRREA SEC. 1121. DEFINITIONS (12 U.S.C. 3350)

    No where in the definition of Federally related transaction are the following included:

    Department of Housing and Urban Development, Fannie Mae or Freddie Mac

    In fact the later two are private corporations and are not currently even government agencies.
     
    Last edited: Oct 1, 2007
  6. incognito

    incognito Senior Member

    0
    Jul 14, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Chris and Howard, thanks for the response. I wish I could say I understood. But I still Do not. Howard, I like what you have to say, and want to agree. Do you think USPAP 2008, having dumped Supplemental Standards completely, will help clarify this? I have read the new AO regarding frt's, and I'm as lost as ever!
     
  7. Howard Klahr

    Howard Klahr Senior Member

    74
    Oct 4, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    incognito,

    Although I can appreciate your confusion, I am not sure what part you are unclear about. If you could explain your issue or need maybe I could approach it from that angle.

    Also, just because an assignment is not being performed for a FRT does not mean that the client does not have requirements that follow those of FRT. For example, Fannie Mae and Freddie Mac do not fall under the requirements of FRT's. However, their own guidelines require the use of certified/licensed appraisers. This is not a USPAP issue, but rather supplemental requirements/guidelines imposed by the client.
     
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