April 10, 2020

Real estate appraisals, reg relief on NCUA agenda

ncuaThe NCUA Board Thursday is set to issue two rules related to appraisals: A final rule that would raise the threshold for residential real estate appraisals and an interim final rule to provide other appraisal relief. The board will also issue a temporary final rule to provide regulatory relief in response to the coronavirus pandemic.

Additionally, the board will receive a briefing on the agency's central liquidity facility (CLF). Flexibility for credit unions to access the CLF was included in the CARES Act.

Due to the coronavirus pandemic, Thursday's meeting is open to the public via live audio webcast only.

Real estate appraisals

The NCUA Board's proposed rule, issued in November, would increase the threshold for requiring a residential real estate appraisal from $250,000 to $400,000.

The rule would provide parity with banks whose regulators issued a joint final ruling increasing the threshold last September. Real estate appraisals were among the top regulatory issues NAFCU recommended the NCUA Board consider last year in order to address appraiser capacity issues and provide credit unions with relief.

Coronavirus relief

NAFCU has previously urged the NCUA to grant credit unions additional capital flexibility and provide parity with banks in light of the coronavirus outbreak.

The association has also detailed steps the agency could take in relation to other issues, including subordinated debt, approval of secondary capital applications, and modification of stress testing.

Additionally, NAFCU President and CEO Dan Berger encouraged the NCUA to take immediate action to provide credit unions with much needed relief in an op-ed in Credit Union Journal.  

Berger has also urged the NCUA to cease all examination activity and make other regulatory adjustments that would alleviate strict compliance requirements currently in place for credit unions.

During NAFCU's Q1 Member Call-In, NCUA Chairman Rodney Hood provided credit unions with an update on the agency's efforts to support the industry, including offsite exam prioritiesannual meetings flexibility, and availability of urgent needs grants and loans for low-income credit unions.

NAFCU has a regulator response table available, outlining the guidance released by various regulators, including the NCUA, as well as a comprehensive summary of the CARES Act.

NAFCU will monitor next week's meeting and update credit unions via NAFCU Today. The board will next meet May 21; view the 2020 meeting dates.