The federal banking agencies issued an interim final rule this evening allowing financial institutions to temporarily defer appraisals and evaluations for residential or commercial real estate transactions for up to 120 days during the COVID-19 national emergency. This temporary relief will expire on Dec. 31, 2020.
The interim final rule—which takes effect upon publication in the Federal Register—does not apply to real estate acquisition, development and construction loan transactions.
In a joint statement, the agencies also reminded institutions of existing exceptions to the appraisal requirements. “The agencies encourage financial institutions to make use of these exceptions,” the statement said. “The use of an existing appraisal or evaluation for subsequent transactions may be particularly relevant during the COVID-19 emergency.”