Removing Barriers Blog

NCUA Letter to CUs on Changes to Appraisal Requirements
Posted April 23, 2020 by dyi

The NCUA sent a letter to credit unions on the appraisal changes made last week to:

  1. increase the residential appraisal threshold from $250,000 to $400,000, and
  2. to temporarily allow credit unions to defer appraisals and written estimates of market value for up to 120 days after the closing of a loan. This flexibility will expire on December 31, 2020. 

This letter explains these two rules and provides guidance on the appropriate use of the appraisal and written estimate of market value deferral. It also summarizes additional appraisal relief and flexibility measures put forth by Fannie Mae, Freddie Mac, and other federal agencies in response to the disruptions of the real estate valuation process caused by the COVID-19 pandemic.