The appraiser must be a state licensed or certified appraiser by the state in which the property to be appraised is located. The appraiser can have no direct or indirect interest, financial or otherwise, in the property or the transaction. The Bank should ask relevant questions of an appraiser to ensure that the appraiser is independent of the transaction and capable of rendering an unbiased opinion.
A staff appraiser or an appraisal company affiliated with the Bank may prepare an appraisal but that appraiser must be independent of the lending, investment, and collections functions and not involved in the approval of the transaction. When fee appraisers from an affiliated company prepare appraisals, similar independent standards apply.