[Federal Register: March 17, 2000 (Volume 65, Number 53)]
[Rules and Regulations]
[Page 14432-14433]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17mr00-2]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Parts 761 and 762
RIN 0560-AF69
Streamlining of Regulations for Real Estate and Chattel
Appraisals; Correction
AGENCY: Farm Service Agency, USDA.
ACTION: Correcting amendments to final rule.
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SUMMARY: This document contains corrections to the final regulations
which were published in the Federal Register on Wednesday, November 17,
1999, (64 FR 62566-62569). The final rule removed administrative
provisions and moved the regulations regarding appraisals pertaining to
the Farm Service Agency's Farm Loan Programs from Chapter XVIII to
Chapter VII.
DATE: Effective on March 17, 2000.
FOR FURTHER INFORMATION CONTACT: Chris L. Greenwalt, Senior Loan
Officer, Program Development and Economic Enhancement Division, USDA/
FSA/PDEED/STOP 0521, 1400 Independence Avenue, S.W., Washington DC
20250-0521, telephone (202)690-0431, facsimile (202)720-8474, e-mail:
chris--greenwalt@wdc.fsa.usda.gov.
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of these corrections
removed administrative provisions and clarified the requirement that
Agency real estate appraisals must comply with the guidelines and
standards contained in the Uniform Standards of Professional Appraisal
Practice (USPAP). In addition, the requirement that specific Agency
formats be used when completing appraisals was eliminated.
Need for Correction
As published, the final rule (64 FR 62566-62569) contains several
errors which may prove to be misleading if not corrected. Section 761.7
is being corrected to clarify that its general requirements apply to
direct loan appraisals and all appraisal reviews. Guaranteed loan
appraisals will still be governed by part 762. Section 762.127 is being
amended accordingly.
Section 761.7 also needs to be corrected with regards to when an
existing real estate appraisal will be used. The Agency inadvertently
failed to address the situation where an appraisal is over 12 months
old but has been updated by the same appraiser or
[[Page 14433]]
appraisal firm within the previous 12 months in accordance with USPAP.
In such case, the existing updated real estate appraisal may be used to
make or service a loan.
List of Subjects
7 CFR Part 761
Accounting, Accounting servicing, Loan programs--Agriculture, Real
property--Appraisals, Rural Areas.
7 CFR Part 762
Agriculture, Loan programs--Agriculture.
Accordingly, 7 CFR parts 761 and 762 are corrected by making the
following correcting amendments:
PART 761--GENERAL AND ADMINISTRATIVE
1. The authority citation for part 761 continues to read as
follows:
Authority: 7 U.S.C. 1989.
2. Revise paragraphs (a) and (d) of Sec. 761.7 to read as follows:
Sec. 761.7 Appraisals
(a) General. This section describes requirements for:
(1) real estate and chattel appraisals made in connection with the
making and servicing of direct Farm Loan Program and nonprogram loans;
and,
(2) appraisal reviews conducted on appraisals made in connection
with the making and servicing of direct and guaranteed Farm Loan
Program and nonprogram loans.
* * * * *
(d) Use of an existing real estate appraisal. The Agency may use an
existing real estate appraisal to reach a loan making or servicing
decision under either of the following conditions:
(1) The appraisal was completed within the previous 12 months and
the Agency determines that:
(i) The appraisal meets the provisions of this section and the
applicable Agency loan making or servicing requirements, and
(ii) Current market values have remained stable since the appraisal
was completed; or
(2) The appraisal was not completed in the previous 12 months, but
has been updated by the appraiser or appraisal firm that completed the
appraisal, and both the update and original appraisal were completed in
accordance with USPAP.
* * * * *
PART 762--GUARANTEED FARM LOANS
4. The authority citation for part 762 continues to read as
follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.
5. Revise paragraph (d) of Sec. 762.127 by adding the following at
the end of the introductory text:
Sec. 762.127 Appraisal requirements.
(d) * * * Agency officials may accept an appraisal that is not
current if there have been no significant changes in the market or on
the subject real estate and the appraisal was either completed within
the past 12 months or updated by a qualified appraisal if not completed
within the past 12 months.
* * * * *
Signed in Washington, D.C., on March 7, 2000.
Parks Shackelford,
Acting Administrator Farm Service Agency.
[FR Doc. 00-6429 Filed 3-16-00; 8:45 am]
BILLING CODE 3410-05-P
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