New interim final rules for credit unions on a temporary deferment of appraisals and raising the maximum amount of loan participations go into effect Tuesday, when they are scheduled to be published in the Federal Register, according to filings Monday.
The first of the final interim rules, adopted by the National Credit Union Administration (NCUA) Board at its meeting last week, defers the requirements 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. The rule is scheduled to expire at year’s end (Dec. 31).
The second final interim rule increases the maximum aggregate amount of loan participations that a federally insured credit union (FICU) may purchase from a single originating lender without seeking a waiver from NCUA to the greater of $5 million or 200% of the FICU’s net worth (up from the greater of $500 million or 100% of the FICU’s net worth). The temporary rule, adopted by the NCUA Board as a relief measure for credit unions in the midst of the coronavirus crisis, also expires Dec. 31.
Both interim final rules are effective upon publication in the Federal Register, which is set for Tuesday.
The appraisal deferral rule is accompanied by a 45-day comment period, which also begins with the Tuesday publishing date of the rule in the Register.