To assist in recovery from recent wildfires and straight-line winds in Los Angeles County, California, four federal financial regulatory agencies have temporarily suspended specific appraisal requirements linked to real estate transactions.
This decision aims to enable banks and credit unions to collaborate with local families and businesses without the need for an appraisal. However, these institutions are still required to confirm that the value of the real estate justifies their decision to engage in the transaction.
This measure allows financial institutions to offer loans or modify existing ones more effectively in impacted regions where obtaining appraisals is difficult. This step is also anticipated to decrease loan processing times and thereby aid in the area’s recovery from the disasters.
