Regulators issued an ICBA-supported final rule
raising the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000—the first increase since 1994. The agencies estimate the rule will raise the number of exempt transactions from 56 percent to 72 percent.
The final rule allows bankers to use a property evaluation in lieu of a full appraisal, expanding on a provision of the S. 2155 law focused on banks in rural markets. The agencies said the change will provide regulatory relief without posing a threat to the safety and soundness of financial institutions given price appreciation over the past quarter-century.
ICBA has repeatedly advocated raising the appraisal threshold and will continue working with policymakers on this issue. In a February comment letter
, ICBA advocated further increasing the threshold to $500,000 and indexing it for inflation.