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OCC Issues Final Rule on Appraisals for Commercial Real Estate Transactions
On Wednesday, May 2, 2018, the OCC issued a bulletin on adopting a final rule to increase the appraisal threshold for commercial real estate (CRE) transactions from $250,000 to $500,000. This threshold increase means that transactions at or below this level do not require appraisals that conform to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the interagency appraisal rules. The final rule also makes amendments to the appraisal rules to reflect the higher CRE appraisal threshold as it relates to evaluations and the use of certified appraisers. The OCC adopted the final rule jointly with the Board of Governors of the Federal Reserve and the FDIC.
The final rule became effective on April 9, 2018.