A one-year waiver of appraiser credentialing requirements for federally related residential real estate transactions in North Dakota will terminate this Dec. 8 under a waiver condition based on federal banking agency rulemaking, according to a Federal Register notice Monday.
The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC) gave partial approval this summer to a waiver of federal appraisal requirements requested by North Dakota; the FFIEC approved the panel’s action. The final order provided North Dakota a waiver of appraiser credentialing requirements for appraisals of federally related transactions under $500,000 for 1-to-4 family residential real estate transactions for one year unless the federal banking agencies issued a rule increasing appraisal exemption threshold limits for residential real estate transactions. In that event, the order provided that the residential waiver would terminate 60 days after the effective date of regulators’ threshold increase.
The federal banking agencies issued a final rule increasing the appraisal exemption threshold from $250,000 to $400,000, effective Oct. 9, 2019. As a result, North Dakota’s temporary waiver regarding residential real estate appraisals will terminate Dec. 8, according to Monday’s notice.
However, another part of the state’s temporary waiver remains intact: In addition to residential real estate transactions, the temporary waiver of appraisal credentialing requirements also applies to federally related commercial real estate transactions under $1 million, but the residential transaction part of the waiver was the only portion conditioned upon banking agency rule changes.
Moreover, the waiver period requested by North Dakota and the one approved by the FFIEC differ, as the state originally sought a waiver period of “not less than five years” for both types of transactions.