Florida Regulations 69U-100.600: Appraisals, and Appraisal Standards and Policies of State Financial Institutions
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(1) The board of directors of each state financial institution shall adopt appraisal standards and policies. Such standards and policies shall be reviewed and approved annually by the board of directors and such approval shall be recorded in the minutes of the meetings of the board of directors.
(2) At a minimum, the appraisal standards and policies shall require that an appraisal prepared by a state-certified or state-licensed appraiser must be obtained prior to funding any loan or extension of credit that is based on the security of real estate, except:
(a) Loans with a total value of $400,000 or less;
(b) Loans with a lien on real property when such property has been taken as collateral solely in an abundance of caution;
(c) When a lien on real estate has been taken for purposes other than the real estate’s value;
(d) The transaction is a business loan that:
1. Has a transaction value of $1 million or less; and,
2. Is not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment;
(e) A lease of real estate, unless the lease is the economic equivalent of a purchase or sale of the leased real estate;
(f) The transaction involves an existing extension of credit at the lending institution, provided that:
1. There has been no obvious and material deterioration in market conditions or physical aspects of the property that would threaten the institution’s collateral protection after the transaction, even with the advancement of new monies; or
2. There is no advancement of new monies, other than funds necessary to cover reasonable closing costs;
(g) The transaction involves the purchase, sale, investment in, exchange of, or extension of credit secured by, a loan or interest in a loan, pooled loans, or interests in real property, including mortgage-backed securities, and each loan or interest in a loan, pooled loan, or real property interest met these appraisal requirements at the time of origination;
(h) The transaction is wholly or partially insured or guaranteed by a United States government agency or United States government-sponsored agency; or
(i) The transaction either:
1. Qualifies for sale to a United States government agency or United States government-sponsored agency; or
2. Involves a residential real estate transaction in which the appraisal conforms to the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation appraisal standards applicable to that category of real estate.
(3) Any loan or extension of credit not requiring a state-certified or state-licensed appraisal under paragraphs (2)(a), (d), or (f) shall not be funded until an appropriate evaluation of the real property has been obtained; and,
(4) Any appraisal report or other evaluation shall be certified to the financial institution and dated within one year prior to funding the loan or extension of credit.
Rulemaking Authority Florida Statutes § 655.012(2), 655.60(2) FS. Law Implemented Florida Statutes § 655.60. History-New 11-2-92, Amended 9-27-94, 11-7-01, Formerly 3C-100.600, Amended 1-18-21.
Terms Used In Florida Regulations 69U-100.600
- Appraisal: A determination of property value.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Dependent: A person dependent for support upon another.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) Loans with a total value of $400,000 or less;
(b) Loans with a lien on real property when such property has been taken as collateral solely in an abundance of caution;
(c) When a lien on real estate has been taken for purposes other than the real estate’s value;
(d) The transaction is a business loan that:
1. Has a transaction value of $1 million or less; and,
2. Is not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment;
(e) A lease of real estate, unless the lease is the economic equivalent of a purchase or sale of the leased real estate;
(f) The transaction involves an existing extension of credit at the lending institution, provided that:
1. There has been no obvious and material deterioration in market conditions or physical aspects of the property that would threaten the institution’s collateral protection after the transaction, even with the advancement of new monies; or
2. There is no advancement of new monies, other than funds necessary to cover reasonable closing costs;
(g) The transaction involves the purchase, sale, investment in, exchange of, or extension of credit secured by, a loan or interest in a loan, pooled loans, or interests in real property, including mortgage-backed securities, and each loan or interest in a loan, pooled loan, or real property interest met these appraisal requirements at the time of origination;
(h) The transaction is wholly or partially insured or guaranteed by a United States government agency or United States government-sponsored agency; or
(i) The transaction either:
1. Qualifies for sale to a United States government agency or United States government-sponsored agency; or
2. Involves a residential real estate transaction in which the appraisal conforms to the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation appraisal standards applicable to that category of real estate.
(3) Any loan or extension of credit not requiring a state-certified or state-licensed appraisal under paragraphs (2)(a), (d), or (f) shall not be funded until an appropriate evaluation of the real property has been obtained; and,
(4) Any appraisal report or other evaluation shall be certified to the financial institution and dated within one year prior to funding the loan or extension of credit.
Rulemaking Authority Florida Statutes § 655.012(2), 655.60(2) FS. Law Implemented Florida Statutes § 655.60. History-New 11-2-92, Amended 9-27-94, 11-7-01, Formerly 3C-100.600, Amended 1-18-21.