Determine whether a transaction requires a certified-appraiser appraisal or may use an evaluation

Steps

1. Identify the transaction type: residential vs. commercial real estate, and whether a residential transaction is 'complex' or 'non-complex.'
2. Confirm current thresholds directly on the applicable regulator's eCFR text (12 CFR 34.43 OCC / 225.63 Federal Reserve / 323.3 FDIC / NCUA equivalent): complex residential transactions above $400,000 require a state-certified appraiser; commercial real estate transactions above $500,000 require an appraisal by a state-certified appraiser.
3. For transactions at or below the applicable threshold, or otherwise exempted, confirm the institution may instead obtain an evaluation consistent with safe-and-sound banking practices per the Interagency Appraisal and Evaluation Guidelines.
4. Confirm which specific numbered exemption paragraph applies before concluding a full appraisal isn't required, since dollar thresholds are only one category among several enumerated exemptions.
5. Document the basis for using an evaluation instead of a full appraisal in the loan file.