Newsroom
December 11, 2014
Appraisal rule revised, input sought on burdensome, outdated NCUA rules
The NCUA Board on Thursday approved rule
changes, sought by NAFCU, that will ease some of credit unions'
appraisal requirements and announced a new request forcomments on rules
that may be outdated,
unnecessary or overly burdensome.
"We are pleased the NCUA Board adopted changes to its appraisal rules, long sought by NAFCU, which will help to reduce credit unions' regulatory burden in this area," Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel, said of Thursday's action on the final rule.
As revised, the appraisal rule no longer requires credit unions to retain copies of all appraisals and documentation related to first-lien mortgage loans. It also exempts a transaction from the appraisal requirement if the transaction involves no new money (except closing costs) or if there has been no material change in market conditions or the condition of the property itself.
The rule revisions take effect 30 days after publication in the Federal Register.
The board's request for comments Thursday continues NCUA's voluntary participation in regulatory reviews under the Economic Growth and Regulatory Paperwork Reduction Act.
NCUA is not required to participate in the review, as it does not qualify as an "appropriate federal banking agency" under the statute. However, it issued its first EGRPRA notice for comment in May. Comments are due on the second notice within 90 days of the notice's publication in the Federal Register.
NCUA Chairman Debbie Matz said the agency will not wait until the end of the EGRPRA process to begin acting on suggestions sent during the first notice period. She announced two working groups on field-of-membership and secondary capitaland said the agency is also looking to modernize its member business loan rules in 2015. (Read more.)
NAFCU staff will carefully review the rules included in the EGRPRA review, with particular focus on rules related to prompt corrective action, advertising, disclosure of share insurance, and low-income designation.
The appraisal rule changes, and many of the rules in the current EGRPRA review, are highlighted by NAFCU in its "Dirty Dozen" list of rules that should be updated or eliminated.
"We are pleased the NCUA Board adopted changes to its appraisal rules, long sought by NAFCU, which will help to reduce credit unions' regulatory burden in this area," Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel, said of Thursday's action on the final rule.
As revised, the appraisal rule no longer requires credit unions to retain copies of all appraisals and documentation related to first-lien mortgage loans. It also exempts a transaction from the appraisal requirement if the transaction involves no new money (except closing costs) or if there has been no material change in market conditions or the condition of the property itself.
The rule revisions take effect 30 days after publication in the Federal Register.
The board's request for comments Thursday continues NCUA's voluntary participation in regulatory reviews under the Economic Growth and Regulatory Paperwork Reduction Act.
NCUA is not required to participate in the review, as it does not qualify as an "appropriate federal banking agency" under the statute. However, it issued its first EGRPRA notice for comment in May. Comments are due on the second notice within 90 days of the notice's publication in the Federal Register.
NCUA Chairman Debbie Matz said the agency will not wait until the end of the EGRPRA process to begin acting on suggestions sent during the first notice period. She announced two working groups on field-of-membership and secondary capitaland said the agency is also looking to modernize its member business loan rules in 2015. (Read more.)
NAFCU staff will carefully review the rules included in the EGRPRA review, with particular focus on rules related to prompt corrective action, advertising, disclosure of share insurance, and low-income designation.
The appraisal rule changes, and many of the rules in the current EGRPRA review, are highlighted by NAFCU in its "Dirty Dozen" list of rules that should be updated or eliminated.
Share This
Related Resources
Get daily updates.
Subscribe to NAFCU today.