Smaller Banks Fault Appraisal Plan

Exempting small real estate loans from appraisals would pose no risk to community banks, the Independent Bankers Association of America said Monday.

Citing a survey of its members, the IBAA also said rural bankers reported a scarcity of appraisers who will be qualified to work for banks under rules due to take effect Jan 1.

IBAA argues that requiring licensed appraisals on loans as small as $50,000 would add costs and inconvenience for less affluent borrowers.

They favor a $100,000 threshold. Loans less than $100,000 lost only a tiny fraction of the $23,000 lost on real estate loans by the average bank in the nine months ended Sept. 30, according to the survey.

The survey was answered by 361 of the 6,087 subscribers to the association's newsletter.

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