Bank Regulators Just Raised Appraisal Threshold to $500,000, Evaluations Now Required for Smaller Transactions
On Monday, April 9, 2018, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and Federal Deposit Insurance Corporation published the final rule officially amending regulations requiring appraisals of real estate for certain transactions. Here’s what you need to know:
- The final rule increases the threshold level at or below which appraisals are not required for commercial real estate transactions from $250,000 to $500,000.
- For transactions exempted from the appraisal requirement as a result of the revised threshold, regulated institutions must obtain an evaluation of the real property collateral “that is consistent with safe and sound banking practices.”
- This is the agencies’ first change to the $250,000 threshold since it was first established in 1994.
…continue reading the rest of this post: NEW APPRAISAL THRESHOLD ON COMMERCIAL EFFECTIVE APRIL 9TH
