On April 20, 2020, the NCUA issued a final rule to provide appraisal relief to credit unions. The final rule does two main things. First, the final rule increases the residential appraisal threshold from $250,000 to $400,000. The raised threshold provides long-term regulatory relief to credit unions and members and aligns with the appraisal threshold adjustment that banking regulators made during 2019. The rule also increases flexibility for credit unions struggling with mortgage pipeline delays due to appraisals during the COVID-19 pandemic. Secondly, the NCUA has issued an interim final rule 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 and this, too, aligns with action taken by banking regulators. The NCUA explains that this deferral is intended to provide liquidity and relief to property owners affected by disruptions to property valuations caused by COVID-19 mitigation efforts. Both rules become effective upon publication in the Federal Register.
The NCUA release can be found here.