The federal banking agencies are seeking public comment on a proposal to raise the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000. The agencies estimate that updating the threshold, which was last increased in 1994, would exempt an additional 214,000 residential real estate loans.
The proposal would require exempt transactions to obtain an evaluation consistent with safe and sound banking practices. It also would incorporate the ICBA-advocated rural residential appraisal exemption in the S. 2155 regulatory relief law.
The FDIC and the OCC approved the proposal on Nov. 20. Comments will be accepted until 60 days after publication in the Federal Register.
Read the Proposed Rule