Removing Barriers Blog

NCUA Joins in Issuing Advisory Concerning Appraiser Availability
Posted June 01,2017 by CUNA Advocacy

The National Credit Union Administration joined other regulatory agencies to take steps to address the growing concerns credit unions, especially in rural areas, face when an appraisal is needed.   

As part of the Federal Financial Reform, Recovery, and Enforcement Act (FIRREA), appraisals performed by state-certified appraisers are required for federally related transactions.  However, concerns of timeliness of such appraisals in rural areas were raised during the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) review process. 

The NCUA, FDIC, Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency issued advisory points to alternatives that may help alleviate the shortage of appraisers. 

  • Temporary practice permits – allows appraisers credentialed in one state to provide their services on a temporary basis in another state experiencing a shortage of appraisers, subject to state law. The advisory also discusses reciprocity, in which one state allows appraisers that are certified or licensed in another state to obtain certification or licensing without having to meet all of the state’s certification or licensing standards. 

  • Temporary waivers – sets aside requirements relating to the certification or licensing of individuals to perform appraisals under Title XI of FIRREA in states or geographic political subdivisions where certain conditions are met. Temporary waivers may be granted when it is determined that there is a scarcity of state-certified or -licensed appraisers leading to significant delays in obtaining an appraisal. 

CUNA appreciates the federal regulators taking the time to issue this advisory and hopes it will alleviate some of the regulatory burden and expedite the process faced by rural credit unions.  

Read the full Advisory on Appraiser Availability here