Reminder: Comments on NCUA's Appraisal Rule Due December 3rd

The NCUA board issued a proposed rule in September that would amend the agency’s regulation requiring real estate appraisals for certain transactions. Comments on the proposal ware due December 3rd. 

According to NCUA, the proposed rule is designed to accomplish four objectives:

  • Increase the threshold below which appraisals would not be required for non-residential real estate transactions to $1 million (up from $250,000). For non-residential real estate transactions that would be exempted from the appraisal requirement as a result of the revised threshold, federally insured credit unions would still be required to obtain a written estimate of market value of the real estate collateral that is consistent with safe and sound lending practices;
  • Restructure §722.3 of NCUA’s appraisal regulation to clarify its requirements for the reader. NCUA’s intent is to more clearly indicate for the reader when a written estimate of market value, an appraisal conducted by a state-licensed appraiser, or an appraisal conducted by a state-certified appraiser is required for a real estate related financial transaction;
  • Exempt from the NCUA’s appraisal regulation certain federally related transactions involving real estate where the property is located in a rural area, valued below $400,000, and no state certified or licensed appraiser is available. This is consistent with provisions in the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155); and
  • Make certain conforming amendments to the definitions section.

 For more information and to issue a comment, click here

in Compliance & Regulatory News