NCUA proposal eases some appraisal requirements; NAFCU reviewing

The NCUA on Thursday issued a proposed rulemaking amending its real estate appraisals for certain transactions. The proposal, among other changes, would increase the threshold from $250,000 to $1 million for non-residential (commercial) real estate transactions exempt from an appraisal requirement.

For those transactions that would be exempt from the appraisal requirement under this rulemaking, federally-insured credit unions would still be required to obtain a written estimate of market value of the real estate collateral to be consistent with sound lending practices.

In April, the FDIC, Federal Reserve Board and the Office of Comptroller of the Currency jointly adopted appraisal changes for banks. The NCUA’s proposal aims to make the commercial real estate appraisal standards for credit unions more consistent with the changes for banks. More on this proposal can be read in today’s NAFCU Compliance Blog post.

The proposal also would:

 

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