Agencies Raise Appraisal Threshold for CRE Transactions
April 10, 2018
Effective April 9, 2018, the Federal Reserve, the OCC and the FDIC each enacted a final rule increasing the threshold level at or below which appraisals are not required for commercial real estate transactions from $250,000 to $500,000, i.e., formal appraisals are not required for any commercial real estate transaction with a transaction value less than $500,000. A “commercial real estate transaction” is defined as a real estate-related financial transaction that is not secured by a single 1-to-4 family residential property.
See CBA’s Regulatory Compliance Bulletin for more information.