ABA Supports Proposed Residential Real Estate Appraisal Threshold Increase

The American Bankers Association today offered support for a recent proposal by the financial regulatory agencies to raise the appraisal threshold for residential real estate transactions to $250,000 to $400,000. Under the proposal, transactions that qualify for the exemption would still need to obtain an evaluation consistent with safe and sound banking practices. The evaluation would provide an estimate of the market value of the property, but would not be required to be prepared by a state licensed or certified appraiser, and would be less detailed and costly than an appraisal.

ABA — which has long raised concerns about the time and cost of appraisals — noted that “this proposed change will help smaller community banks keep pace with the strong competitive pressure posed by growing secondary market appraisal waivers.” The association added that banks “have the risk management controls in place to manage these changes responsibly.”


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