Commercial real estate appraisal. (Source: Shutterstock)
The NCUA board's decision to increase the appraisal threshold for commercial real estate-related transactions from $250,000 to $1 million is "irresponsible, radical and dangerous," the largest trade group representing appraisers said Thursday.
"This is an outlandish scenario for anyone who cares about the safety and soundness of the nation's commercial real estate lending system, and it could recreate conditions that led to the financial crisis of the late 2000s," Appraisal Institute President Stephen Wagner said. "The NCUA's ill-conceived, damaging decision shows overwhelmingly the need for immediate, rigorous congressional oversight."
Recommended For You
Voting 2-1, the NCUA board approved the threshold increase. Board member Todd Harper was the lone dissenter, noting that banking regulators have increased their threshold from $250,000 to $500,000.
The Appraisal Institute said that increasing the threshold would drastically increase the number of transactions that would not require an appraiser.
"This decision – based entirely on providing regulatory relief – completely ignores the fact that the United States suffered through a financial crisis less than a decade ago," Wagner said.
Wagner warned that the NCUA's decision could create a regulatory arms race that could lead the banking regulators to increase their threshold in an effort to stay competitive.
The Institute said that the NCUA "the agency with the least direct experience in overseeing business and commercial real estate lending – effectively could be driving the appraisal policies for the entire financial regulatory system."
"Everyone involved in this country's commercial real estate industry should be incensed at the NCUA's reckless decision, which potentially places the nation's economy at significant risk," Wagner said.
And Thursday, the Independent Community Bankers of America condemned the NCUA's move, with association President/CEO Rebeca Romero Rainey saying the agency "once again pushing the envelope to benefit the industry it is charged with regulating."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
