Revisions to Direct Farm Loan Programs Appraisal Regulations

This rule amends the Farm Service Agency's (FSA) regulations governing real estate and chattel appraisals. In loan making, the rule allows FSA to obtain appraisals after loan funds become available and the applicant is determined eligible. Also, the rule increases the dollar threshold that determines when a real estate appraisal is required. In loan servicing, the rule raises the dollar threshold for real estate appraisals in partial release situations and allows the Agency in some cases to release real estate security without appraising the retained real estate. These changes will reduce FSA's appraisal costs and enhance the timeliness of program delivery of certain loan making and servicing actions.