NCUA Follows Banking Regulators and Changes Appraisal Rules – NMP
Regulation and Compliance

NCUA Follows Banking Regulators and Changes Appraisal Rules

Apr 16, 2020
House Photo by Rowan Heuvel on Unsplash
A headshot of Keith Griffin
Senior Editor

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. 
 
 
About the author
A headshot of Keith Griffin
Senior Editor
Keith Griffin is a senior editor at NMP.
Link copied
Published
Apr 16, 2020
Get the NMP Daily
Regulation and Compliance
Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place

Fannie Mae’s artificial intelligence and machine-learning governance requirements take effect Thursday, Aug. 6, giving approved seller/servicers a final deadline to formalize how the technology is used across mortgage origination and servicing.The requirements apply when a s...

Continue reading
Analysis and Data
Higher Mortgage Rates Shrink Purchase Demand, Expand Buyer Leverage

Pending sales fell to their lowest level since early April, but lower asking prices and reduced competition give originators more options to structure deals for qualified borrowers

Higher mortgage rates are thinning the purchase pipeline, even as lower asking prices and reduced competition give borrowers still in the market more leverage.Seasonally adjusted U.S. pending home sales totaled 322,739 during the four weeks ending July 26, their lowest level...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Regulation and Compliance
Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place

Regulation and Compliance
Jul 31, 2026
Condo Review Deadline Puts Lenders On The Clock

Fannie Mae and Freddie Mac will eliminate abbreviated project reviews for condo applications dated on or after Aug. 3

Regulation and Compliance
Jul 24, 2026
TRUE Releases AI Governance Guide Ahead Of Fannie Mae Deadline

Guide focuses on tracing mortgage data from borrower documents through AI validation, human review, and final LOS entry

Regulation and Compliance
Jul 22, 2026
AD Mortgage Warns Condo Eligibility Changes Could Restrict Conventional Financing

Wholesale lender cites internal loan data to urge regulators to monitor whether new condominium eligibility standards reduce access to conventional financing

Regulation and Compliance
Jul 20, 2026
CHLA Says Direct Payments Are Key To Small FHA Loans

The lender group says mortgages below $100,000 routinely lose money, while LO compensation rules could prevent federal incentives from reaching originators

Regulation and Compliance
Jul 17, 2026
Solidifi Clears FHA Certification For UAD 3.6 Integration

The appraisal management company says it is the first to complete certification for FHA’s modernized EAD platform, giving lender clients an early path toward implementation

Regulation and Compliance
Jul 16, 2026