Banking regulators today announced they have temporarily paused certain appraisal requirements for real estate-related transactions in Los Angeles County in California to facilitate recovery efforts following the wildfires earlier this year.
According to a joint statement, the pause should allow banks and credit unions to work with families and businesses without obtaining an appraisal. Banks and credit unions will still be required to determine that the value of the real estate supports the institution’s decision to enter into the transaction, they said.
Financial institutions will be better able to lend or modify loans in areas where wildfire and straight-line wind damage have made appraisals challenging to obtain, according to the agencies. This pause is also expected to reduce loan processing times.
The pause will expire on Jan. 8, 2028. The agencies said they will continue to monitor institutions’ real estate lending practices to ensure the transactions are being conducted in a safe and sound manner.
Banking regulators implemented a similar pause in 2024 to facilitate recovery in Hawaii following the Maui wildfires the year before. That pause remains in effect until Aug. 10, 2026.
