The National Credit Union Administration’s (NCUA) Board announced that it has approved a proposed rule that would amend the administration’s real estate appraisal requirements for certain transactions.
According to NCUA, the proposed rule would help provide regulatory relief and increased clarity by first raising the threshold for required appraisals in non-residential real estate transactions from $250,000 to $1 million. When dealing with an exempted transaction, federally insured credit unions would still be required to obtain a written estimate of market value that is consistent with safe and sound lending practices.
Second, the new rule would restructure 722.3 of NCUA’s appraisal regulation to help clarify its requirements so they more clearly indicate when a written estimate of market value, an appraisal conducted by a state-licensed appraiser, or an appraisal conducted by a state-certified appraiser is required.
Third, NCUA’s proposed rule would provide an exemption from its appraisal regulation for certain federally-related transactions involving real estate that is located in a rural area, valued below $400,000, and no state-licensed or state-certified appraiser is available.
Lastly, the new rule would verify certain conforming amendments to the definitions section of the current regulation.
NCUA is looking for comments on its proposed rule, which must be received within 60 days of its publication in the Federal Register.
For more information, including the rule’s full text, click here.