Appraisal Institute Blasts NCUA Over Commercial Property Threshold

Jul 18, 2019

The Appraisal Institute has announced Jefferson L. Sherman will begin a one-year term as president beginning on New Year’s Day

The Appraisal Institute has called for congressional oversight in response to the National Credit Union Administration’s (NCUA) decision to increase the threshold on appraisals for non-residential real estate loans from $250,000 to $1 million.

The Appraisal Institute noted that three of the federal banking regulatory agencies–the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve Board–approved increasing the commercial appraisal threshold from $250,000 to $500,000.

Credit unions originated $67 billion in commercial loans last year, and the Appraisal Institute warned that the NCUA’s action could spur the other regulatory agencies to follow suit.

“This is an outlandish scenario for anyone who cares about the safety and soundness of the nation’s commercial real estate lending system, and it could recreate conditions that led to the financial crisis of the late 2000s,” said Appraisal Institute President Stephen S. Wagner. “The NCUA’s ill-conceived, damaging decision shows overwhelmingly the need for immediate, rigorous congressional oversight.”

Wagner added that his organization was “working with members of Congress and their staffs to bring about meaningful change that will help prevent this type of outrageously heedless public policy making in the future.”

About the author

Phil Hall

Link copied

Published

Jul 18, 2019

C-Suite Strategies

First Federal Sells TPO Division To Mortgage Forward

Deal includes QRL Financial as First Federal sharpens focus on retail mortgage lending

First Federal Bank has agreed to sell its third-party origination (TPO) division, including QRL Financial, to Mortgage Forward.The companies announced they have signed a definitive agreement for Mortgage Forward, a credit union service organization (CUSO) within the Great La...

Tech

Friday Harbor Integrates AI Pre-Underwriting Platform With MeridianLink Mortgage

Integration brings AI-powered pre-underwriting platform into MeridianLink's loan origination system

Friday Harbor has integrated its AI-powered pre-underwriting platform with MeridianLink Mortgage, allowing lenders to access the technology within MeridianLink's loan origination system.The integration synchronizes loan data between the two platforms and is intended to help ...

Jul

New Orleans, LA

More from

Regulation and Compliance

UAD 3.6 Deadline Nears; First American Earns Verification

First American's ACI Sky Workbench gains verification ahead of the Nov. 2 implementation date for the GSEs' updated appraisal reporting requirements

Regulation and Compliance

Jun 08, 2026

MISMO Introduces New Loan Boarding Standard

Wrapper Files support standardized data transfers between origination and servicing systems, with potential savings of $60 to $160 per loan

Regulation and Compliance

May 29, 2026

The GLBA Compliance Gap Your AI Deployment Just Opened

Old statutes, new models, and the vendor contract you signed before machine learning became operational

Regulation and Compliance

May 26, 2026

FHA Keeps Tri-Merge Credit Reports While Expanding Approved Scoring Models

HUD says FHA lenders will continue using three-bureau credit reports even as the agency adopts newer scoring models aimed at increasing competition and modernizing mortgage underwriting

Regulation and Compliance

May 26, 2026

House Passes Amended 21st Century Road To Housing Act

The House version softens a controversial provision aimed at large institutional investors

Regulation and Compliance

May 21, 2026

New York Cash-Home Tax Proposal Could Push Wealthy Buyers Back Into Mortgages

As all-cash deals surge nationwide, a proposed 1% levy on $1M+ purchases in NY may reshape jumbo lending, borrower strategy, and origination opportunities

Regulation and Compliance

May 19, 2026

Popular