Newsroom

November 21, 2019

Today: NCUA Board to discuss real estate appraisals, second chance initiative

NCUAThe NCUA Board today is expected to issue a proposed rule on residential real estate appraisals, and a final Interpretive Ruling and Policy Statement (IRPS), known as the Second Chance IRPS, that would allow credit unions to more easily hire job candidates with minor criminal records. The board is also set to receive a briefing on the National Credit Union Share Insurance Fund (NCUSIF) quarterly report.

The board met yesterday for a briefing on the agency's proposed 2020 and 2021 budgets and heard comments from NAFCU Chief Economist and Vice President of Research Curt Long. It is set to finalize the budgets during its Dec. 12 meeting.

Real estate appraisals

The NCUA's proposed rule is expected to increase the threshold for residential real estate appraisals for credit unions and, if passed, could provide parity with banks. Three federal banking agencies issued a joint final rule in September that increased the threshold for residential real estate appraisals to $400,000.

Real estate appraisals were among the top regulatory issues NAFCU recommended the NCUA Board consider this year, and the board in July finalized a NAFCU-supported rule to increase commercial real estate appraisals from $250,000 to $1 million for non-residential, rural real-estate-related financial transactions. The association has urged the board to increase thresholds in efforts to address appraiser capacity issues in smaller markets and provide credit unions with relief.

Second Chance Interpretive Ruling and Policy Statement (IRPS)

The Second Chance IRPS, as proposed, would expand current de minimis and conviction exceptions to include additional offenses and implement a new age-based exception to the filing requirement. The rule also considers whether the NCUA should delegate responsibility of reviewing certain applications to streamline the application process, among other things.

NAFCU supported the proposed Second Chance IRPS but raised concerns about the delegation of application review as well as the potential for increases to credit unions’ insurance premiums.

The meeting will be available to watch via livestream on the agency's website. NAFCU will attend today's meeting and update credit unions on the rulemakings in NAFCU Today.