United States: New rule exempts RRE transactions of $400,000 or less from appraisal requirements

United States

United States: New rule exempts RRE transactions of $400,000 or less from appraisal requirements

The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have adopted a final rule that increases the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000.

 

The rule incorporates the appraisal exemption for rural residential properties provided by the Economic Growth, Regulatory Relief, and Consumer Protection Act and similarly requires evaluations for these transactions. 

 

The rule also requires institutions to review appraisals for compliance with the Uniform Standards of Professional Appraisal Practice.

 

For transactions exempted from the appraisal requirement, the rule requires institutions to obtain an evaluation to provide an estimate of the market value of real estate collateral.

 

Photo by 15299 from Pixabay 

Post a Comment