The NCUA should pursue a rulemaking to increase the threshold for which an appraisal is required for a residential real estate transaction, CUNA wrote to the agency last week. CUNA’s letter follows up the July adoption of a final appraisals rule from the NCUA board.
“While the recent changes to the NCUA’s appraisal regulations have been helpful, we ask the agency to pursue additional changes to decrease unnecessary regulatory burden on credit unions and their members,” the letter reads. “Specifically, we urge the Board to issue a rulemaking to increase the threshold for which an appraisal is required for a residential real estate transaction. We support increasing the current threshold to at least $400,000.”
CUNA believes that increasing the threshold will have a substantial benefit for credit union members seeking to obtain a mortgage, and it would address a competitive disadvantage created when federal banking regulators raised the threshold for banks to $400,000.
CUNA also noted that the NCUA board has the express authority to raise the threshold under Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.