Is appraisal by certified appraiser required?

Appraisal requirements are codified to 12 C. F. R.323.3 as follows:

(d) Transactions requiring a state certified appraiser--(1) All transactions of $1,000,000 or more. All federally related transactions having a transaction value of $1,000,000 or more shall require an appraisal prepared by a state certified appraiser.

(2) Nonresidental transactions of $250,000 or more. All federally related transactions having a transaction value of $250,000 or more, other than those involving appraisals{{8-30-02 p.2240.02}}of 1--to--4 family residential properties, shall require an appraisal prepared by a state certified appraiser.

(3) Complex residential transactions of $250,000 or more. All complex 1--to--4 family residential property appraisals rendered in connection with federally related transactions shall require a state certified appraiser if the transaction value is $250,000 or more. A regulated institution may presume that appraisals of 1--to--4 family residential properties are not complex, unless the institution has readily available information that a given appraisal will be complex. The regulated institution shall be responsible for making the final determination of whether the appraisal is complex. If during the course of the appraisal a licensed appraiser identifies factors that would result in the property, form of ownership, or market conditions being considered atypical, then either:

(i) The regulated institution may ask the licensed appraiser to complete the appraisal and have a certified appraiser approve and co-sign the appraisal; or

(ii) The institution may engage a certified appraiser to complete the appraisal.(e) Transactions requiring either a state certified or licensed appraiser. All appraisals for federally related transactions not requiring the services of a state certified appraiser shall be prepared by either a state certified appraiser or a state licensed appraiser.