Bank and Thrift Regulation:
Observations on Proposed Changes to Appraisal Requirement
T-GGD-94-102: Published: Mar 1, 1994. Publicly Released: Mar 1, 1994.
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GAO discussed the threshold for exempting federally insured financial institutions' real estate transactions from appraisal requirements, focusing on the proposed change in the threshold and its effect on real estate valuation, deposit insurance funds, and consumers. GAO noted that: (1) current law requires appraisals for all financial institutions' real estate transactions and that states implement programs for licensing and certifying appraisers; (2) the appraisals must be written, comply with uniform standards, and be conducted by competent and professional individuals under proper supervision; (3) most regulators have raised their appraisal threshold to $100,000 because low loss rates make appraisals unnecessary; (4) the regulators' proposed threshold change includes raising the threshold to $250,000, expanding and clarifying existing appraisal exemptions, and identifying additional circumstances under which appraisals would not be required; (5) objections to the threshold change include safety and soundness problems, increased risk exposure from inadequate appraisals, failure to affect credit availability, and the negative impact on loan applicants; (6) proponents believe that the risk to deposit insurance funds will not increase, inadequate appraisals are not a problem, lending costs will decline, loan closings will be expedited, and appraisals for most residential properties will still occur; and (7) the proposed change could reduce consumers' costs and the regulatory burden, but there is little information on the adverse impact of appraisals on consumers.
Jan 28, 2021
Macroprudential Oversight:
Principles for Evaluating Policies to Assess and Mitigate Risks to Financial System StabilityGAO-21-230SP: Published: Jan 28, 2021. Publicly Released: Jan 28, 2021.
Dec 16, 2020
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Financial Stability:
Agencies Have Not Found Leveraged Lending to Significantly Threaten Stability but Remain Cautious Amid PandemicGAO-21-167: Published: Dec 16, 2020. Publicly Released: Dec 16, 2020.
Dec 10, 2020
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Federal Reserve Lending Programs:
Use of CARES Act-Supported Programs Has Been Limited and Flow of Credit Has Generally ImprovedGAO-21-180: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020. -
Financial Assistance:
Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible BusinessesGAO-21-198: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020.
Sep 22, 2020
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Anti-Money Laundering:
Opportunities Exist to Increase Law Enforcement Use of Bank Secrecy Act Reports, and Banks' Costs to Comply with the Act VariedGAO-20-574: Published: Sep 22, 2020. Publicly Released: Sep 22, 2020.
Sep 4, 2020
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Bank Supervision:
FDIC Could Better Address Regulatory Capture RisksGAO-20-519: Published: Sep 4, 2020. Publicly Released: Sep 4, 2020.
Jul 21, 2020
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Financial Company Bankruptcies:
Congress and Regulators Have Updated Resolution Planning RequirementsGAO-20-608R: Published: Jul 21, 2020. Publicly Released: Jul 21, 2020.
Jul 6, 2020
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Public Companies:
Disclosure of Environmental, Social, and Governance Factors and Options to Enhance ThemGAO-20-530: Published: Jul 2, 2020. Publicly Released: Jul 6, 2020.
Apr 30, 2020
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Priority Open Recommendations:
Department of the TreasuryGAO-20-549PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.
Apr 27, 2020
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Priority Open Recommendations:
Board of Governors of the Federal Reserve SystemGAO-20-499PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020.
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