Regulatory Alerts2021-10-21
Requirements for Valuation of Real Estate in Loan Origination and Monitoring
The Norwegian Financial Supervisory Authority issued circular 5/2021 to implement European Banking Authority guidelines regarding the valuation of real estate collateral for loan origination and monitoring. The document mandates that financial institutions establish internal policies for using statistical models and qualified valuers, ensuring models are robust, backtested, and free from conflicts of interest. Compliance with these valuation standards, particularly for statistical modeling, is expected to be achieved by January 1, 2022.
Share