Federal financial regulatory agencies have taken a decisive step to aid recovery in areas affected by wildfires and wind damage in Los Angeles County, California. On April 15, 2025, the agencies announced a temporary pause on specific appraisal requirements for real estate-related transactions.
The decision aims to assist banks and credit unions as they work with families and businesses, allowing transactions without obtaining an appraisal. However, institutions must still ensure the real estate’s value justifies entering into the transaction.
The pause is intended to improve lending capabilities and loan modification processes in regions where such appraisals are challenging due to disaster conditions. It is also expected to shorten loan processing times, aiding faster recovery.
The regulatory agencies have set January 8, 2028, as the expiration date for this temporary action. They will oversee the institutions to ensure that all transactions comply with safe and sound lending practices.
“The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter, and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.”
Media representatives for the agencies have provided contact details for further inquiries. LaJuan Williams-Young (FDIC), Karolina Kalset (FRB), Joe Adamoli (NCUA), and Stephanie Collins (OCC) can be reached for additional information.
