Enter Search TextSubmitSearch Advanced Search     Home     Deposit Insurance     Consumer Protection     Industry Analysis     Regulations & Examinations     Asset Sales     News & Events     About FDIC

		Home > Regulation & Examinations > Laws & Regulations > FDIC Law, Regulations, Related Acts

FDIC Law, Regulations, Related Acts

[Main Tabs]     [Table of Contents - 4000]     [Index]     [Previous Page]     [Next Page]     [Search] 4000 - Advisory Opinions Interpretation of 12 C.F.R. § 323.5 Where Mortgage Broker Acts as Agent for Institution in Ordering Appraisals FDIC-91-82 October 17, 1991 Walter P. Doyle, Counsel   This responds to your October 10 letter requesting a legal interpretation of § 323.5 of FDIC's appraisal rule as it relates to mortgage brokers acting as agent for a regulated institution in ordering appraisals.   A mortgage broker that has entered into an agreement to generate loan applications to be approved and funded by a regulated institution may be considered an "agent" of the institution. As the agent for the institution, the mortgage broker would be required to obtain appraisals in accordance with the rule in the same manner that the institution would if it were making the loan directly. The institution remains responsible for complying with the appraisal rule. It is recommended that the agreement with the agent be reduced to writing and set out the agent's responsibilities to ensure compliance with the requirements of the appraisal rule. The institution should establish also compliance procedures to review the performance of its agent.   A mortgage company is not acting as agent for an institution when the mortgage company takes the initial credit risk and offers the funded mortgage for sale to the public. A new appraisal is not required, however, if the real estate supporting the purchased mortgage was appraised in accordance with the regulation at the time the loan was originated.   Please let us know if we can be of further assistance. [Main Tabs]     [Table of Contents - 4000]     [Index]     [Previous Page]     [Next Page]     [Search]

regs@fdic.gov

Home    Contact Us    Search    Help    SiteMap    Forms Freedom of Information Act (FOIA) Service Center    Website Policies    USA.gov

FDIC Office of Inspector General