The FDIC board of directors on Tuesday, March 20 approved a final rule to raise the appraisal threshold for commercial real estate transactions that qualify for a commercial evaluation from $250,000 to $500,000. The final rule increases the threshold from the original proposed amount of $400,000.
The final rule must now be approved by the Federal Reserve and the OCC, both of whom are expected to back the measure. Once approved, it will be effective 30 days after publication in the Federal Register. The rule is expected to provide relief to banks that are currently faced with a shortage of certified appraisers, especially in rural areas, as well as lengthy appraisal turnaround times. Go here to read the new rule.