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CUNA Notes Several Concerns in NCUA’s Appraisals Proposal
CUNA generally supports NCUA’s proposed rule on real estate appraisals, it recommended several substantive changes in potentially problematic areas in its comment lettersubmitted Monday.

CUNA supports the agency’s efforts to reorganize the appraisal regulation to make it easier for readers to determine whether, and if so by whom, an appraisal is required.

Specifically, NCUA’s proposal would:

• Increase the threshold below which appraisals would not be required for non-residential real estate transactions to $1 million (up from $250,000);

• Restructure the appraisal regulation to clarify its requirements for the reader;

• Exempt from the appraisal regulation certain federally related transactions involving real estate where the property is located in a rural area; and

• Make certain conforming amendments to the definitions section.

One area of the rule flagged by CUNA concerns amending the exemption from appraisal requirements for certain transactions involving an existing extension of credit. The proposal would make the exemption available only if the transaction is not considered a new loan under generally accepted accounting principles (GAAP).

CUNA believes this change reduces flexibility and may make fewer transactions eligible for the exemption.

Copyright 2018. CUNA Daily News. (link)
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