Postponing Your Appraisal Until After Closing? New Emergency Rules Make It Possible For Certain Borrowers.
Thursday, April 16, 2020
Three federal banking regulators came together this week to announce a temporary suspension of appraisals for credit-worthy borrowers while the country prepares for the economic impact of COVID-19. The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a joint statement saying, “...the completion of appraisals and evaluations required under the agencies’ appraisal regulations may be deferred by a regulated institution for up to 120 days from the date of closing. The temporary deferrals apply to all residential and commercial real estate secured transactions, including loans for new money or refinancing transactions...”.
The statement goes on to list the exceptions, most notably for loans obtained for new construction.