Real Estate Appraisals — 1997-12-09 [97-32160]

The Board of Governors of the Federal Reserve System is soliciting comments on a proposed amendment to subpart G of the Board's Regulation Y, Appraisal Standards for Federally Related Transactions, to exempt any transaction involving the underwriting or dealing of mortgage-backed securities from the Board's appraisal requirements. This amendment would permit a bank holding company or a nonbank subsidiary of a bank holding company engaged in underwriting and dealing in securities (a so-called section 20 subsidiary) to underwrite and deal in mortgage-backed securities without demonstrating that the loans underlying the securities are supported by appraisals that meet the Board's appraisal requirements.