Proposal Would Raise Appraisal Threshold on Commercial Real Estate Loans

Filed in Housing Finance by on July 19, 2017 0 Comments

The Federal Reserve Board, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency today issued a notice proposing to increase the threshold for requiring an appraisal on commercial real estate loans from the current level of $250,000 to $400,000.

In a press release, the agencies stated that action “will significantly reduce the number of transactions that require an appraisal and will not pose a threat to the safety and soundness of financial institutions.”

The agencies are also accepting comments on evaluating the current $250,000 appraisal threshold for 1-to-4 family residential transactions. While the agencies are not proposing to change the threshold for single-family residential mortgages, they would like comment on other ways to relieve the regulatory burden related to appraisals for residential mortgage loan.

NAHB is evaluating the rulemaking proposal and will submit comments to the banking agencies.

For more information, contact Jessica Lynch at 800-368-5242 x8401.



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