Statement: Raising Commercial Appraisal Threshold Puts U.S. Economy at Greater Risk
(WASHINGTON) July 19, 2019 – The Appraisal Foundation President David Bunton today raised concerns about the action taken by the National Credit Union Administration, which quadrupled the threshold for commercial transactions requiring an appraisal from $250,000 to $1,000,000.
"The Appraisal Foundation is deeply concerned that the action taken yesterday by the National Credit Union Administration is yet another needless attempt to dilute the federal financial and public policy protections of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which requires real estate appraisals to be used in federally related transactions.
Yesterday’s action and the proposed rule by federal banking regulators to raise the threshold amount for residential real estate, combined with the years of accumulated carve outs, waivers, and exemptions, has jeopardized the U.S. economy by putting it at greater risk.
The protections originally envisioned by Title XI are facing a death by a thousand cuts, and unfortunately, the 1000th may be too close for comfort."
The Appraisal Foundation is the nation’s foremost authority on the valuation profession. The organization sets the Congressionally-authorized standards and qualifications for real estate appraisers, and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. This work advances the profession by ensuring appraisals are independent, consistent, and objective. More information on The Appraisal Foundation is available at www.appraisalfoundation.org.
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Media Contact: David Greer
Director of Communications
The Appraisal Foundation
dgreer@appraisalfoundation.org
direct phone 202.624.3048