Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-476 - Credit union - Other real estate owned › Section 208-476-050 - Definitions

Current through Register Vol. 24-14, July 15, 2024
For purposes of these rules, the following definitions
						apply:
"Appraisal" means a written report by a certified or licensed
						appraiser containing sufficient information to support the credit union's
						evaluation of OREO, taking into consideration market value, analyzing
						appropriate deductions or discounts, and conforming to generally accepted
						appraisal standards, unless principles of safe and sound credit union practices
						require stricter standards.
"DCU" means the division of credit unions of the Washington
						state department of financial institutions.
"DFI" means the Washington state department of financial
						institutions.
"Director" means the director of the department of financial
						institutions, or the director's designee, typically the assistant director of
						the division of credit unions.
						RCW
						   43.320.050.
"Fair value" and "fair market value" mean the cash price that
						might reasonably be anticipated in a current sale under all conditions
						requisite to a fair sale, in which the buyer and the seller are each acting
						prudently, knowledgeably and under no necessity to buy or sell. An appraisal at
						"fair value" primarily relies upon an estimate of the cash price that might be
						received upon exposure to the open market for a reasonable time, considering
						the property type and local market conditions. This is known as the "market
						data approach." However, an appraisal at "fair value" may, in appropriate
						circumstances, be based upon the "cost approach" with regard to real estate
						improvements, including current replacement cost.
"Foreclosure" means:
(a) The involuntary termination of all rights
					of a trustor/grantor or mortgagor in the property covered by a deed of trust or
					mortgage, by means of statutory power of sale or judicial foreclosure; or
					by
(b) A deed in lieu of
					foreclosure, the voluntary transfer (usually by quitclaim) of a
					trustor/grantor's or mortgagor's interest in real estate to the beneficiary of
					a deed of trust or mortgagee, in lieu of the beneficiary or mortgagee
					exercising the statutory power of sale or obtaining a judicial decree of
					foreclosure.
"GAAP" means "generally accepted accounting principles," as
						codified in the financial accounting standards board accounting standards
						codification (FASB ASC).
"Other real estate owned" (OREO) means real estate acquired by
						a credit union in whole or partial satisfaction of a debt owed to a credit
						union, by means of:
(a) Foreclosure or
					deed in lieu of foreclosure of the credit union's deed of trust or mortgage;
					or
(b) Acquisition by the credit
					union and subsequent foreclosure, or deed in lieu of foreclosure of a superior
					lien interest.
OREO is then held in inventory until sold.
"OREO" does not mean real property held for the credit union's
						own business use or expansion under
						RCW
						   31.12.438.