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MIPRU 1.3 Remuneration and property valuation requirements for MCD creditors



MIPRU 1.3 applies to an MCD creditor other than an incoming EEA firm2.

Property valuation requirements


For the valuation of residential immovable property to enter into an MCD credit agreement:

  1. (1)

    an MCD creditor must use reliable standards for the valuation where the valuation is carried out by the MCD creditor; or

  2. (2)

    where the valuation is carried out by a third party, the MCD creditor must take reasonable steps to ensure that reliable standards are used.

[Note: article 19(1) of the MCD]


For the purposes of MIPRU 1.3.2 R:

  1. (1)

    reliable standards for the valuation of residential immovable property include internationally recognised valuation standards, in particular those developed by the International Valuation Standards Council1 (IVSC), the European Group of Valuers’ Associations (EGoVA) or the Royal Institution of Chartered Surveyors (RICS), as well as the standards in BIPRU 3.4.77 R to BIPRU 3.4.80 R or, where applicable, MIPRU 4.2F.27 R to MIPRU 4.2F.29 R.

[Note: recital 26 of the MCD]

  1. (2)

    the MCD creditor is not limited to on-site inspections where it is possible to demonstrate that any risks posed have been adequately assessed through the overall collateral management process.


An MCD creditor must ensure that:

  1. (1)

    internal and external appraisers conducting property valuations are professionally competent and sufficiently independent from the credit underwriting process so they can provide an impartial and objective valuation; and

  2. (2)

    property valuations are documented in a durable medium.

[Note: article 19(2) of the MCD]