Committee Passes H.R. 3619
H.R. 3619 has passed out of committee and is now sitting in the US House for consideration.
H.R.3619 would amend the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to provide the Appraisal Subcommittee with the authority to modify annual registry fees for appraisal management companies, to maintain a registry of trainees and charge a lower trainee registry fee, and to allow grants to States to assist appraiser and potential appraiser compliance with the Real Property Appraiser Qualification Criteria and would require AMCs to disclose their fees.
The NCUA Quadrupled The Appraisal Threshold For Nonresidential Real Estate Loans
By a 2-1 vote the board of the National Credit Union Administration (NCUA) voted to raise its appraisal threshold on commercial property from $250,000 to $1 million, twice the level set by the nation’s banking regulators.
An estimated two-thirds of commercial loans by credit unions will now be exempt from the appraisal requirement.
ICAP believes that raising the threshold to such a high level will result in a dramatic loss in appraisal independence and risk mitigation. Optionality for real estate appraisal in commercial lending will result in a return to the loan production-driven environment seen during the lead-up to the financial crisis.
ASC Grants Temporary Waiver of North Dakota Licensing and Certification Requirements
The waiver, which applies to both residential loans below $500,000 and commercial real estate loans below $1,000,000, is for one year with an ASC-activated option for a second year provided that both the Department of Financial Institutions and the Appraiser Board work productively to address issues that lead to some of the longest turnaround times in the nation, whether or not those issues are related to the presence or absence of a scarcity of appraisers in North Dakota.
The grant of a waiver must be concurred in by the Federal Financial Institutions Examination Council and the residential waiver could be sunset 60 days if banking regulators raise the appraisal threshold.