NCUA Board Issues Proposed Rule to Increase Appraisal Threshold

On November 19, 2019, the National Credit Union Administration (NCUA) Board issued a proposed rule to increase the threshold level below which appraisals are not required to be performed for residential real estate related transactions from $250,000 to $400,000.  Comments must be received on or before January 28, 2020.

According to the proposed rule, written estimates of fair market value that are consistent with safe and sound business practices will still be required for transactions exempted from the appraisal requirements by the increased threshold.

The proposed rule also explicitly will require appraisals to be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice.