NWCUA Commercial Services Council Reviews Rulemaking Related to Regulatory Bill S.2155

Providing input to regulators even when legislation is favorable is important in continued work to remove regulatory barriers.

12/11/18

During the Northwest Credit Union Association’s November Commercial Services Council, attendees  briefly discussed a Notice of Proposed Rulemaking that was recently issued by the National Credit Union Administration.

The group provided input on the proposal, and one Northwest credit union also wrote a comment letter to the NCUA regarding the NPRM. Your Association also wrote a comment letter to the NCUA regarding the NPRM.

“It is important to comment on proposed rules, even if they do provide regulatory relief for credit unions,” said  Katie Clark, Director, NWCUA Regulatory Compliance and Risk Management. “Providing our support and recommendations for a proposed rule ensures that credit unions’ voices are heard and can take part in the rulemaking process.”

The NCUA’s Notice of Proposed Rulemaking would:

  • Increase the non-residential real estate appraisal threshold from $250,000 to $1,000,000;
  • Exempt certain rural property transactions with a value less than $400,000 if no state-certified or state-licensed appraiser is available; and
  • Clarify and rearrange the regulation to make it easier to determine when a written estimate or an appraisal is required.

The exemption relating to rural properties with a transaction value less than $400,000 stemmed from the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) that was passed and signed into law earlier this year – a measure introduced by Idaho Senator Mike Crapo and supported by an army of Northwest Credit Union Movement advocates

The law defines rural properties the same way as they are defined in Regulation Z (12 CFR 1026.35(b)(2)(iv)(a). It provides that lenders must have contacted no fewer than three state-certified or state-licensed appraisers in the market area and that no appraiser was available within five business days beyond customary and reasonable fee and timeliness standards.

Your Association will continue to monitor the progress of the NCUA’s proposed real estate appraisal rule and will update credit unions once further action is taken.

Questions about the NCUA’s Notice of Proposed Rulemaking may be directed to Katie Clark, Director of Regulatory Compliance and Risk Management. Visit NWCUA’s Councils website learn more about participating, or contact Carmen Vigil, Director of Cooperative Momentum.