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On October 17, 2017, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively “the agencies”), announced they have eased Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) appraisal requirements for areas of Florida, Georgia, Puerto Rico, Texas, and the U.S. Virgin Islands that have been declared major disaster areas by President Trump due to Hurricanes Harvey, Irma, and Maria.
The agencies will exempt federally related real estate transactions in the affected areas from requiring an appraisal. This temporary exemption will last for 36 months following the date of the Presidential Disaster declarations. Transactions will still require a valuation of the property that supports the transaction, but it does not have to be a formal appraisal.