What is the maximum value under which services of an appraiser are not required, according to FIRREA?

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The maximum value under which the services of an appraiser are not required, according to the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), is $250,000. This regulation was established to ensure that smaller transactions, which are often seen as lower risk or less complex, do not require a formal appraisal, thereby streamlining the process for lenders.

Transactions below this threshold typically involve less financial exposure for banks and financial institutions, which is why they have the discretion to proceed without a professional appraiser's assessment. By setting this limit, FIRREA aims to allocate appraisal resources more effectively and reduce unnecessary costs for smaller property transactions. For transactions valued above this amount, an appraisal is mandatory to ensure accurate valuation and assessment of the property’s worth for lending decisions.

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