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Credit unions commend NCUA for proposed real estate appraisal rule

Today Credit Union National Association (CUNA) Chief Advocacy Officer, Ryan Donovan released the below statement following the National Credit Union Administration (NCUA) Board meeting.  A proposed rule was issued that that would amend the agency’s regulation requiring real estate appraisals for certain transactions.

"CUNA commends NCUA on its action to raise the non-residential real estate appraisals threshold, and looks forward to commenting on the proposal,” Donovan said.

Currently, an appraisal is required for non-residential real estate transactions with a market value greater than $250,000. The proposed rule would increase the threshold to $1 million. A written estimate of market value would still be required. The agency is seeking comment on whether a de minimus exemption should also apply to this provision. For a GSE-backed loan, the market value would be determined by the uninsured value. The proposal will be subject to a 60 day comment period.

For more information please visit CUNA News: http://news.cuna.org/articles/114902-ncua-issues-proposal-to-amend-certain-appraisal-reqs

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