Financial Institutions Reform, Recovery and Enforcement Act of 1989

The Financial Institutions Reform, Recovery And Enforcement Act (FIRREA) was enacted in 1989, following the savings and loan crisis. Enacted to ensure that real estate appraisals are performed up to standard, FIRREA has created a more efficient, productive, and effective base on which to build the industry and better serve as a safeguard for future transactions. FIRREA also tackles with the regulation on the competency of the appraisers, supervisory standards, and accurate and full documentation, also allowing bank holding companies to acquire thrifts. FIRREA aims to reform, recapitalize, and consolidate the Federal deposit insurance system, to enhance the regulatory and enforcement powers of Federal financial institutions regulatory agencies, and for other purposes.