United States Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration and the Office of the Comptroller of the Currency issued a temporary pause of certain appraisal requirements for real estate-related transactions in Los Angeles County, California affected by 2025 wildfires and straight-line wind damage. The relief is intended to let banks and credit unions lend to, or modify loans for, affected families and businesses without obtaining an appraisal, provided they still determine that the real estate value supports the decision to enter into the transaction. Supervisors expect the pause to address difficulties obtaining appraisals in damaged areas and to reduce loan processing times as recovery efforts continue. 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 Deposit Insurance Corporation 2025-04-15
United States Federal Deposit Insurance Corporation and other federal regulators temporarily pause appraisal requirements for Los Angeles County disaster-affected real estate transactions
The U.S. Federal Deposit Insurance Corporation, Federal Reserve Board, National Credit Union Administration, and Office of the Comptroller of the Currency have temporarily paused certain appraisal requirements for real estate transactions in Los Angeles County due to 2025 wildfires and wind damage. This measure facilitates lending and loan modifications for affected families and businesses without appraisals, ensuring real estate values support transactions. The pause expires on January 8, 2028, with ongoing monitoring of lending practices for safety and soundness.