Agencies Issue Appraisal Exception in Flood-Struck Louisiana Areas

The FDIC, Federal Reserve, OCC and National Credit Union Administration today announced an exception to regulatory real estate appraisal requirements in the Louisiana parishes hardest hit by severe flooding in the summer. The exception is in effect from the time the notice is published in the Federal Register until Dec. 31, 2017. It applies to the 22 parishes labeled a “major disaster area” by President Obama. The affected area includes most of southern Louisiana, including the Baton Rouge and Lafayette metro areas.

“The agencies have determined that the disruption of real estate markets in the major disaster area interferes with the ability of depository institutions to obtain appraisals that comply with all statutory and regulatory requirements,” the agencies said. “Further, the agencies have determined that the disruption may impede institutions in making loans and engaging in other transactions that would aid in the reconstruction and rehabilitation of the affected area.”