New rules on fidelity bonds and real estate appraisals from the federal credit union regulator are set to take effect Oct. 22, according to Federal Register notices published Wednesday.
The NCUA Board approved the two final rules during its regular monthly meeting last week. The real estate appraisals regulation (among other things) raises to $1 million the threshold for commercial real estate transactions subject to required appraisals from state-certified appraisers. The board approved the final rule on a split vote of 2-1.
The fidelity bonds regulation, according to the agency, strengthens a board of directors’ oversight of a federally insured credit union’s (FICU) fidelity bond coverage. It also, the agency said: ensures an adequate period to discover and file fidelity bond claims following an FICU’s liquidation; codifies a 2017 NCUA Office of General Counsel legal opinion that permits a natural person credit union’s fidelity bond to include coverage for certain credit union service organizations (CUSOs); and addresses board approval of bond forms.
Final rule: Real Estate Appraisals