The Federal Reserve Board, the Office of the Comptroller of the Currency and the FDIC proposed to exempt residential real estate transactions of $400,000 or less from appraisal requirements.
According to the agencies, the proposal would require that residential real estate transactions below the new $400,000 threshold be supported by an evaluation that contains "sufficient information and analysis to support the decision to engage in the transaction."
In addition, the proposed rule amendment would implement changes required by the Economic Growth, Regulatory Relief and Consumer Protection Act by adding certain transactions secured by residential property in rural areas to the list of exempt transactions. For these exempt transactions, the proposed rule would likewise mandate evaluations.
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