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Federal Financial Institutions Examination Council (FFIEC) Definition
The Federal Financial Institutions Examination Council (FFIEC) was founded on March 10, 1979. The regulatory U.S agency is made up of several other financial regulatory agencies created to promote, uphold unwaivering standards for financial institutions and also supervise and promote real estate in the U.S.
A Little More on What is the Federal Financial Institutions Examination Council (FFIEC)
The Federal Financial Institutions Council (FFIEC) as the name suggests is a regulatory body saddled with the responsibility of formulating conforming standards and principles used in examining financial institutions. The FFIEC makes recommendation to ensure uniformity in regulating financial institutions at the federal level and also ensure that there is strict adherence to policies and standards.
The FFIEC trains examiners from its other regulatory bodies and other state regulatory agencies. Also to note, the FFIEC creates a standard reporting systems for federally supervised banks, financial institutions and the holding companies associated with them and the nonfinancial subsidiaries of the financial institutions and their holding companies.
The FFIEC and Real Estate
The Home Mortgage Disclosure Act of 1975 mandated the FFIEC to make available necessary mortgage information from financial institutions to the public in 1980. The FFIEC was saddled with the responsibility of monitoring trends in housing, mortgage borrowing and lending from the data made available by lenders. The act has also mandated lenders to provide information such as sex, race and income of people applying for mortgages. This data had been used to provide a report stating an increase in mortgage borrowing by blacks and Hispanics in 1993.
The FFIEC established the Appraisal subcommittee to control real estate appraisal in the U.S due to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The Appraisal Subcommittee performs this function through the Appraisal Foundation, which consist of the Appraiser Qualifications Board (AQB), the Appraisal Standards Board (ASB) and the Appraisal Practices Board (APB). All of these perform the sole function of regulating real estate appraisal.