Regulators suspend appraisal requirements for California wildfires recovery

Friday, July 25, 2025
Rohit Chopra Director at FDIC | Official Website
Regulators suspend appraisal requirements for California wildfires recovery

In response to the recent wildfires and straight-line wind damage in Los Angeles County, California, four federal financial regulatory agencies have taken steps to aid recovery efforts by temporarily suspending certain appraisal requirements for real estate-related transactions.

This temporary measure is designed to enable banks and credit unions to assist families and businesses without needing an appraisal. These institutions must still verify that the real estate's value justifies their decision to proceed with any transaction.

With this change, financial institutions should find it easier to offer loans or modify existing ones in affected areas where obtaining appraisals is difficult. Additionally, this move is anticipated to decrease loan processing times and thereby aid in disaster recovery.

The exemption from appraisal requirements will last until January 8, 2028. Throughout this period, the agencies plan to oversee real estate lending practices to ensure transactions are conducted safely and soundly.

"The agencies will monitor institutions’ real estate lending practices to ensure the transactions are being conducted in a safe and sound manner," reads a statement on the matter.

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