The US Federal Reserve Board, together with the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and National Credit Union Administration, issued temporary exceptions to appraisal requirements for certain real estate-related transactions in Los Angeles County, California following wildfires and straight-line wind damage. The pause is intended to allow banks and credit unions to lend or modify loans without obtaining an appraisal where one is difficult to secure, while still requiring institutions to determine that the real estate value supports the decision to enter into the transaction. The agencies expect the relief to help institutions work with affected families and businesses and reduce loan processing times in impacted areas. The action expires on January 8, 2028, and the agencies will monitor institutions’ real estate lending practices to ensure transactions are conducted in a safe and sound manner.
Federal Reserve Board 2025-04-15
US Federal Reserve Board joins FDIC, OCC and NCUA in temporarily pausing FIRREA appraisal requirements for Los Angeles County disaster-related real estate transactions
The US Federal Reserve Board, FDIC, OCC, and NCUA issued temporary exceptions to appraisal requirements for certain real estate transactions in Los Angeles County due to wildfire and wind damage. This allows banks and credit unions to lend or modify loans without an appraisal when difficult to obtain, ensuring real estate value supports the transaction. The relief assists affected families and businesses and reduces loan processing times, with monitoring to ensure safe lending practices.