ICBA called on regulators to expand their proposal to provide relief from mortgage appraisal requirements that raise loan-processing times and consumer costs.
Regulators are proposing to raise the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000. In a comment letter, ICBA advocated further increasing the threshold to $500,000, which would be consistent with a rule issued last year on commercial real estate transactions. ICBA also asked regulators to index the threshold for inflation.
The proposed rule applies to mortgage loans retained in portfolio. Banks would still have to obtain a thorough evaluation of subject properties. The proposal also makes conforming changes to add transactions in rural areas that were exempted under the S.2155 regulatory relief law enacted last year.
Read ICBA Comment Letter
Read More on the Proposal