The Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (the “Agencies”) adopted a final rule related to appraisals of residential real property.
In December of last year, the Agencies issued a joint press release seeking public comment on a proposal to raise the appraisal exemption threshold for certain residential real estate transactions. After receiving public comments, the Agencies have adopted the final rule as proposed, thereby raising the residential real estate appraisal threshold to $400,000.
The final rule also incorporates changes related to the Economic Growth, Regulatory Relief, and Consumer Protection Act for rural residential appraisals and adds a requirement that financial institutions review appraisals for federally related transactions for compliance with the Uniform Standards of Professional Appraisal (“USPAP”).
This appraisal threshold increase is effective the day after publication of the final rule in the Federal Register. The evaluation requirement for transactions exempted by the rural residential appraisal exemption and the requirement to review appraisals for compliances with the USPAP are effective on January 1, 2020.
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