Letter to Credit Unions 16-CU-09
Real Estate Appraisal Waiver for Credit Unions Affected by Severe Storms and Flooding in Louisiana
October 2016

On October 24, 2016, NCUA and the other federal financial institution regulatory agencies issued an exception from the appraisal requirements for all real estate-related financial transactions that require the services of an appraiser the Louisiana parishes President Obama has designated as a major disaster area. This exception expires December 31, 2017.

The exception provides credit unions flexibility in complying with appraisal provisions of NCUA’s rule Part 722, allowing credit unions to conduct certain transactions without obtaining the otherwise require appraisal.  The following criteria must be met to qualify for the exception:

  • the transaction involves real property located in one of the parishes declared a major disaster area
  • there is a binding commitment to fund a transaction that was entered into on or after August 14, 2016, but no later than December 31, 2017
  • the value of the real property supports the credit union’s decision to enter into the transaction

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