Lobby of the NCUA.
The NCUA board on Thursday proposed to amend its real estate rules to increase the threshold for appraisal exemptions for non-residential real estate transactions.
Under the proposed rule, which will be open for comment once it is published in the Federal Register, the threshold below which appraisals would not be required for non-residential real estate transactions would be increased from $250,000 to $1,000,000.
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Federally insured credit unions still would be required to "obtain a written estimate of market value of the real estate collateral that is consistent with safe and sound lending practices" for properties that are exempt from appraisals.
The proposal also would exempt from NCUA appraisal rules certain transactions involving real estate in rural areas valued below $400,000, where no licensed appraiser is available.
Banking regulators already have made similar changes.
In other business, board member Rick Metsger was honored for five years of service on the board, even though his term expired in August 2017. President Trump has nominated Rodney Hood, a Republican, to replace Metsger, a Democrat.
However, the Senate has not considered the Hood nomination. The Senate, according to sources in the credit union community, is waiting for Trump to nominate a Democrat for the third board seat.
Only then will the board have the three members called for in federal law.
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