To help facilitate recovery efforts from wildfires and straight-line wind damage in Los Angeles County, CA this year, four federal financial institution regulatory agencies have temporarily paused certain appraisal requirements for real estate-related transactions, including the National Credit Union Administration (NCUA).
This topic is on the NCUA Board’s meeting agenda for Thursday, April 17.
This action is expected to allow banks and credit unions to work with families and businesses without obtaining an appraisal. Credit unions and banks will still be required to determine that the value of the real estate supports the institution’s decision to enter into the transaction.
As a result of this action, financial institutions will be better able to lend or modify loans in areas where wildfire and straight-line wind damage has made appraisals challenging to obtain. This action is also expected to reduce loan processing times, helping to facilitate recovery from the disaster.
This action will expire on January 8, 2028. The agencies will monitor institutions’ real estate lending practices to ensure the transactions are being conducted in a safe and sound manner.
You can view the Federal Register Notice here.
Credit unions can visit the California Credit Union League and Nevada’s Credit Unions’ Crisis Response site for latest information. In light of devastating events, CUAid disaster grants are available to assist credit union employees and board members with immediate financial relief needs. These grants can provide crucial support during such challenging times.
Relatedly, the California Department of Financial Protection and Innovation (DFPI’s) Los Angeles Fire Resources Site can help affected Californians find the help they need. Credit union leaders and their members can learn about the more than 300 mortgage lenders and servicers that have committed to providing relief, along with how to stay safe from frauds and scams.
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:
Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
Additionally, other League-member compliance resources include:
For more information, email Lisa Quaranta.
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