Interim Final Rule: Real Estate Appraisals

Title:
Real Estate Appraisals
Subject: Appraisals (coronavirus response)
Agency: NCUA
Status: Interim final rule; request for comments
Summary:

The NCUA Board (Board) is adopting this interim final rule to amend its regulations requiring appraisals of real estate for certain transactions. The interim final rule defers the requirement to obtain an appraisal or written estimate of market value for up to 120 days following the closing of a transaction for certain residential and commercial real estate transactions, excluding transactions for acquisition, development, and construction of real estate. Credit unions should make best efforts to obtain a credible valuation of real property collateral before the loan closing, and otherwise underwrite loans consistent with safety and soundness principles. The Board is providing this relief to allow credit unions to expeditiously extend liquidity to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the National Emergency declared in connection with coronavirus disease 2019 (COVID-19). The interim final rule is substantially identical to a recent interim final rule issued by the Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (FRB); and Federal Deposit Insurance Corporation (FDIC) (collectively, the other banking agencies) that also defers the requirement to obtain an appraisal or evaluation for up to 120 days following the closing of a transaction for certain residential and commercial real estate transactions.

FR Doc:

2020-08435

Date proposed:
Comments due date: June 5, 2020
Final rule effective date:

April 21 through Dec. 31, 2020

Rule compliance date:
Agency release:

Related Reg Report item(s):

Temporary rules for credit unions on appraisal deferrals, loan participations set to take effect Tuesday

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