Appendix A of the Guidelines discusses the application of the “Transactions Involving Real Estate Notes” exemption as follows:
If each note or real estate interest meets the . . . regulatory requirements
for appraisals at the time the real estate note was originated, the institution
need not obtain a new appraisal to support its interest in the transaction.
The institution should employ audit procedures and review a representative
sample of appraisals supporting pooled loans or real estate notes to determine
that the conditions of the exemption have been satisfied.
75 Fed. Reg. at 77467