Washington Report

Advocacy Updates from Washington D.C.

NAR Comments on Commercial Appraisals

On September 25, 2017, NAR sent a comment letter to Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System (collectively the Federal Banking Agencies) supporting a proposed increase to the appraisal threshold for commercial real estate Federally Related Transactions from $250,000 to $400,000. This increase reflects the rise of inflation since the $250,000 threshold was set and would not adversely affect the commercial real estate industry. However, NAR urged the Federal Banking Agencies to maintain the current appraisal threshold for residential real estate Federally Related Transactions at $250,000. An increase to the residential threshold would undermine the safety and soundness of the residential housing market, given the large percentage of residential properties that would no longer require a traditional appraisal.

NAR Comment Letter 

Proposed Regulation