Skip to main content

NCUA Follows Banking Regulators and Changes Appraisal Rules

Keith Griffin
Apr 16, 2020
House Photo by Rowan Heuvel on Unsplash

As expected, the National Credit Union Administration (NCUA) has followed in the footsteps of its federal banking regulators and changed appraisal rules. The moves are a direct response to the coronavirus pandemic.

The NCUA announced an appraisal is not required for residential real-estate related transactions from $250,000 to $400,000. If the property involved in the transaction is below the threshold, federally insured credit unions will be required to obtain written estimates of the market value of the real estate, consistent with safe and sound practices.

“We recognize that the process of securing a loan and purchasing a home can be time-consuming and costly, particularly for middle- and working-class borrowers and those who live in underserved and rural areas,” NCUA Chairman Rodney E. Hood said. “This common-sense adjustment to the appraisal threshold for residential real estate transactions is a timely regulatory reform that will serve lenders and borrowers well.”

The NCUA Board unanimously approved an interim final rule that allows a credit union to temporarily defer certain appraisals and evaluations for up to 120 days when other alternatives are not available and when the appraisal or evaluation would delay the closing of the residential or commercial real estate loan transaction. The interim final rule covers all real estate related transactions except those involving acquisition, development, and construction real estate loans are excluded from this interim rule.
A similar interim final rule was approved previously by the federal banking agencies.
These temporary provisions will expire on Dec. 31, 2020, unless extended by the NCUA Board. 

Impact Of Juneteenth Holiday On Residential Mortgage Closings

The CFPB is aware of concerns regarding implementation of the new Juneteenth Federal holiday as it relates to mortgage lender compliance with Truth in Lending Act.

Regulation and Compliance
Jun 24, 2021
Biden Appoints Sandra Thompson As Acting Director Of The FHFA

The White House appointed Sandra L. Thompson as acting director of the Federal Housing Finance Agency (FHFA), effective immediately. Her statement reveals that a permanent director will be confirmed in December.

Regulation and Compliance
Jun 24, 2021
The New URLA – What’s the Big Deal?

Lenders will need to update their technology stack to comply with the redesigned URLA.

Regulation and Compliance
Jun 14, 2021
Texas State Legislators Looks To Protect Reverse Mortgage Borrowers

A Texas House Bill has been introduced to prevent false, misleading or deceptive advertising by reverse mortgage lenders.

Jun 02, 2021
Could Prudential Standards for Nonbank Mortgage Servicers be Eased?

From The Desk Of The “Om-Bobs-Man”

Regulation and Compliance
May 31, 2021
Get Ready to Duck and Cover

After years of hands-off attitude by regulators, a new wave of mortgage enforcement is building. Expect a tsunami.

Regulation and Compliance
May 13, 2021