The NCUA board issued a proposed rule to raise the threshold for which an appraisal is required for a residential real estate transaction to $400,000 at its Thursday meeting. CUNA specifically requested such a rulemaking in and Oct. 3 letter to the agency.
“We thank the NCUA board for responding quickly and issuing a proposal we believe will significantly benefit credit union members seeking to obtain mortgage credit,” said CUNA Deputy Chief Advocacy Officer Elizabeth Eurgubian. “Not only will this proposal reduce the significant time and expenses for homebuyers associated with residential appraisals, it will address a competitive disadvantage credit unions have faced since federal banking regulators raised the threshold to $400,000 in September 2019.”
The NCUA board finalized a CUNA-backed rule at its July board meeting making changes to the appraisal rule to provide relief for commercial real estate transactions and enhancing clarity within the rule.
CUNA sent its letter in October, noting that the July changes were helpful, but additional changes will further decrease unnecessary burdens on credit unions and their members. The letter also highlighted that the NCUA board has the express authority to raise the threshold.