The Appraisal Institute’s latest issue of the Valuation magazine discusses key topics that are looming large over the valuation profession, and risks for appraisers who perform assignments in support of federal tax deductions or state tax credits for donated conservation easements.[Read more…]
By Douglas A. Potts, MAI, AI-GRS
As you might have heard, the National Credit Union Administration’s Board of Directors on July 18 quadrupled – from $250,000 to $1 million – the appraisal threshold for nonresidential real estate loans. Of course, increasing the threshold would drastically reduce the number of nonresidential real estate loans requiring an appraisal. [Read more…]
The federal bank regulatory agencies have proposed to increase the residential appraisal threshold level from $250,000 to $400,000, exempting nearly three quarters of residential real estate related financial transactions from appraisal requirements. [Read more…]
The Appraisal Institute invests significant time and effort surrounding banking regulatory relief and maintaining appraisal thresholds. That’s the subject of the On Point column in Valuation magazine’s second quarter 2018 issue. [Read more…]
Will Fannie Mae and Freddie Mac’s plans to waive appraisals for certain loan purchase and refinance transactions lead to a “race to the bottom?” That’s the topic of the On Point column in Valuation magazine’s first quarter 2018 issue.
In recent remarks to a community banking conference, St. Louis Federal Reserve President James Bullard joined the chorus of voices within the banking sector suggesting one way to ease the regulatory burden of banks would be to raise the threshold for when an appraisal is required.
“Inflation adjustment alone suggests that the threshold in 2015 should be higher,” Bullard explained. “We estimate the number of required appraisals would decline significantly.” The threshold currently stands at $250,000 transaction value for any real estate and $1 million for owner-occupied commercial real estate loans, but some proposals would double the threshold, at least for real estate.