Residential Tract Development Lending Frequently Asked Questions

Highlights: 

The attached document addresses common questions about appraisal and real estate lending requirements for financing residential construction in a tract development. 

Institutions should review these FAQs in conjunction with the following: 

• FDIC Part 323 Appraisal Regulations 
  http://www.fdic.gov/regulations/laws/rules/2000-4300.html 
• Interagency Appraisal and Evaluation Guidelines (1994) 
  http://www.fdic.gov/regulations/laws/rules/5000-4800.html#5000interagencyaae 
• Part 365 Real Lending Standards and Interagency Guidelines for Real Estate Lending Policies 
  http://www.fdic.gov/regulations/laws/rules/2000-8700.html 

Distribution: 
FDIC-Supervised Banks (Commercial and Savings) 

Suggested Routing: 
Chief Executive Officer 
Compliance Officer 
Chief Lending Officer 
Chief Appraiser 
Legal Counsel 

Frequently Asked Questions on Residential Tract Development - PDF 99k ( PDF Help ) 

Note: 
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2005/index.html . 

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html . 

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).