When is a lender required by FIRREA to engage the services of an appraiser directly?

A lender is required by the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) to engage the services of an appraiser directly anytime the transaction is federally related. This requirement ensures that the appraisal process meets specific standards and protects the integrity of federally insured institutions and their clients.

Transactions that are federally related include those backed by federal funds, such as loans that involve Fannie Mae, Freddie Mac, or insured by the Federal Housing Administration (FHA). In such cases, having an independent, certified appraiser is crucial to ensure transparency and objectivity in property valuations, thus safeguarding the interests of both the lender and the borrower.

The other options fail to capture the full scope of FIRREA's requirements. The act is not limited to transactions based only on the sale of property, nor is it restricted to just commercial transactions or those that exceed a certain dollar amount. Instead, its focus is on any transaction that involves federal regulations or funding, underlining the importance of maintaining appraisal standards across the board.