Newsroom
NCUA, NAFCU offer further guidance on real estate appraisal relief
In a Letter to Credit Unions released this week, the NCUA provided further guidance on rules approved during its April board meeting, including two rules related to real estate appraisals, which will become effective upon publication in the Federal Register.
The NCUA’s final rule raised the real estate appraisal threshold from $250,000 to $400,000 and, in addition to providing parity with banks, the rule will ensure that credit unions are not unfairly disadvantaged in the marketplace.
The board also approved an interim final rule, in alignment with a recent rule from the banking regulators, to defer the requirement to obtain an appraisal or evaluation for up to 120 days following the closing of a transaction for certain residential and commercial real estate transactions in order to help credit unions offer immediate liquidity and credit to members amid the coronavirus pandemic.
The NCUA notes that there is no limit on transaction size under the interim rule and all residential real estate loans, and all commercial real estate loans except acquisition, development, construction loans are covered.
NAFCU sent members Final Regulation Alerts yesterday with key considerations for both rules.
The Final Regulation on the interim final rule highlights that:
- the interim rule does not waive the requirement to obtain a required appraisal;
- the interim rule does not apply to transactions for acquisition, development, and construction of real estate;
- credit unions should make best efforts to obtain a credible valuation of real property collateral before the loan closing, and otherwise underwrite loans consistent with safety and soundness principles.
In addition, the NCUA advises that credit unions should only use a delayed appraisal decision when additional flexibilities are not possible within the scheduled closing date. This interim final rule will expire Dec. 31, 2020, unless extended by the board, and credit unions may submit comments on the rule up to 45 days after it is published in the Federal Register.
In the Final Regulation on the threshold increase, NAFCU notes that:
- transactions that fall below the $400,000 threshold will require a written estimate of market value consistent with safe and sound practices; and
- the final rule removes additional requirements for the appraisal exemption for certain residential real estate transactions in rural areas.
NAFCU will continue to work with the NCUA and other regulators to ensure immediate action is taken to provide credit unions with much needed relief in the wake of the coronavirus pandemic.
The association has several resources available online to assist credit unions, including an updated summary table of regulator actions, detailing actions taken by the NCUA and other agencies to provide guidance and relief to financial institutions.
Share This
Related Resources
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Add to Calendar 2024-04-30 14:00:00 2024-04-30 14:00:00 State of Consumer Credit: How Behaviors have Shifted and Trends in US Bankcard Benchmarks About the Webinar In an era marked by volatility and evolving credit trends such as historic inflation and the rise of BNPL, credit unions must adapt to mitigate risks effectively. Join the experts at FICO in exploring how to leverage FICO Scores to enhance competitiveness while maintaining stability and compliance. Key Takeaways: Learn about the latest in consumer credit behaviors and score distributions since the pandemic Take a closer look at major US bankcard trends in comparison to the credit union industry, such as average card spend, balance, missed payments and more. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
State of Consumer Credit: How Behaviors have Shifted and Trends in US Bankcard Benchmarks
preferred partner
FICO
Webinar
Add to Calendar 2024-04-25 14:00:00 2024-04-25 14:00:00 ChatGPT: What AI can do for you! ChatGPT has been created with one main objective – to predict the next word in a sentence, based on what's typically happened in the gigabytes of text data that it's been trained on. Did you ever hear of the saying, “People fear the unknown?” Artificial intelligence scares people, but it is the future, and you need to understand the tools and resources it offers. It’s also about saving time, that’s what technology and in this case, artificial intelligence can do for you. If you want to save time and have a better quality of life, this training is for you. Once you give ChatGPT a question or prompt, it passes through the AI model and the chatbot produces a response based on the information you've given and how that fits into its vast amount of training data. It's during this training that ChatGPT has learned what word, or sequence of words, typically follows the last one in a given context. During this webinar, ChatGPT: What AI can do for you, you’ll discover the background, purpose, usability, and the pros and cons. Don't miss this opportunity! Key Takeaways Learn the background of AI Understand the purpose of AI Identify the pros and cons Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 25, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCRMs Risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
ChatGPT: What AI can do for you!
Credits: NCRM
Webinar
Add to Calendar 2024-04-25 14:00:00 2024-04-25 14:00:00 Unifying Two Different Executive Benefits Programs About the Webinar In part one we discussed how to retain key positions during a time of transition. In part two, we will look at how to combine executive benefits programs from two different organizations into a single high-performing program. Evaluating each program includes many different facets, from strategy and expense to performance and servicing. This session will provide important considerations, whether or not you have pending M&A activity. Key Takeaways: Is the plan design both retentive and efficient? Is the benefit expense properly mitigated? Does the legal agreement reflect the board’s intent? View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Unifying Two Different Executive Benefits Programs
preferred partner
Gallagher
Webinar
Get daily updates.
Subscribe to NAFCU today.