The NCUA board votes 2-1 in favor of the Real Estate Appraisals

The purpose of this final rule is to update commercial real estate appraisal standards for credit unions to reflect changes in bank standards and for inflation.

NCUA SealAn appraisal performed by a state-certified appraiser is required for transactions that are not exempt and the transaction value is $1 million or more. For commercial real estate transactions with transaction values below $1 million, credit unions are encouraged to use their judgment, consistent with safe and sound lending practices to determine whether to use an appraisal or a written estimate of market value.

This rule accomplishes the following objectives:
Increases the threshold which appraisals are not required for commercial real estate transactions from $250,000 to $1,000,000
Restructures the rule to enhance clarity
Exempts certain federally related transactions involving real estate in rural areas
This rule will go into effect 90 days after it's published in the Federal Register.