In a federally related transaction, what is the requirement for an appraiser hired by the lender?

In federally related transactions, the requirement for an appraiser hired by the lender is that the appraiser must be either state-licensed or state-certified. This ensures that the appraiser is properly qualified and adheres to the standards set by the Appraisal Foundation and relevant state regulatory bodies. State-licensed and state-certified appraisers have completed the necessary education, training, and examinations required to perform appraisals for federally related transactions, thereby protecting the interests of both the lender and the borrower.

The necessity for state licensing or certification also helps maintain a level of professionalism and adherence to ethical standards within the appraisal industry, which is crucial for the integrity of the lending process. This requirement is in place to ensure that appraisals are accurate and reliable, which is essential for lending institutions to mitigate risk when offering loans based on property values.

The other options do not satisfy the requirements set by federal regulations. For instance, possessing both an appraiser's license and a real estate license is not necessary, as a real estate license does not replace the need for appraisal credentials. Additionally, being requested by the seller does not meet the criteria since appraisers must be independent of the transaction to ensure objectivity. Lastly, the notion of submitting the lowest bid is irrelevant