Umm – There is an Elephant in the Room.

By | July 18, 2019

Why is Greed Being Disguised as Economic Growth? 

The National Credit Union Association passed the final rule increasing the threshold requiring an appraisal on commercial loans from $250,000 to $1,000,000. This greed is being disguised as economic growth and job creation.  More smoke and mirrors.  

 From the NCAU press release:

“This rule is part of a commonsense approach to regulation that will help put more resources into our communities,” NCUA Board Chairman Rodney E. Hood said. “Rethinking the appraisal rule is an example of regulatory reform that is positive and can help boost economic activity and job creation, particularly in some of our nation’s more hard-pressed areas.”

The final rule accomplishes four agency objectives:

  • Increases the threshold for required appraisals in commercial real estate transactions from the current $250,000 to $1 million;
  • Reorganizes the appraisal regulation to make it easier to  determine when a written estimate or an appraisal is required;
  • Exempts real estate transactions located in rural areas from appraisal requirements if certain conditions are met; and
  • Amends the definitions section of the rule to reflect these changes.

The final rule will become effective 90 days after publication in the Federal Register.


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One thought on “Umm – There is an Elephant in the Room.

  1. Mike Ford, American Guild of Appraisers

    I wonder how many credit union members are even aware their credit unions have been making business and commercial loans for years? When I was Budgetary Counselor for the nations largest FCU, the watchword was always protecting the members comes first. Not, “let’s see how much speculative profit we can churn by reckless investing or underwriting.”

    I wonder who will have the ability to absorb the biggest of the big credit unions when the house of cards collapses…again.


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