Federally-chartered banks and thrifts – and their subprime operating units – should keep borrowers out of the appraisal decision and thoroughly review all valuations before funding a loan. The caution was included in guidance released recently by the Federal Financial Institutions Examination Council. The guidance, which took the form of responses to frequently asked questions, resulted from inquires that the regulatory agencies had received from lenders wanting more clarification about the existing standards for selecting,…