Occ Exempting Appraisal Requirements In Louisiana

[Semi Pro]

Has anyone seen this or something similar implemented in their areas following a disaster?

https://www.occ.gov/news-issuances/bulletins/2016/bulletin-2016-35.html

Exception goes all the way through December 17, 2017. Trying to get a handle on what this means for us appraisers.

 

[Randolph Kinney]

No, first time I have heard of it but it does not surprise me.

 

[Meandering]

It means that all valuations have to be appraisals because it is a disaster area, so exemption from appraisal requirements can not be claimed.

More work for appraisers.

.

 

[Mark K]

It means that all valuations have to be appraisals because it is a disaster area, so exemption from appraisal requirements can not be claimed.



.

I read it the opposite way, i.e, appraisals can be waived as long as the bank feels the value of the real estate is sufficient.

You know that with the critical "appraiser shortage" that is plaguing the market, the feds want to dump money as fast as possible to buy votes, I mean to rehabilitate the affected area, without appraisers hindering the process.


"....are exempting real estate-related transactions in Louisiana parishes declared to be in a major disaster area by President Obama on August 14, 2016, following severe storms and flooding. The agencies are providing relief for these transactions from appraisal requirements under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and its implementing regulations. "

 

[Meandering]

Well,

http://appraisersforum.com/forums/t...-lowering-underwriting-barriers.214361/page-4

 

[hastalavista]

I read it the opposite way, i.e, appraisals can be waived as long as the bank feels the value of the real estate is sufficient.

I'm reading it the same way you are, Mark.
I don't believe the OCC has anything to do with Fannie/Freddie or their DU streamlined process.

As I recall, there was a similar order that came out after Katrina.

 

[timd354]

It means that all valuations have to be appraisals because it is a disaster area, so exemption from appraisal requirements can not be claimed.

More work for appraisers.

.

Your statement is the exact opposite of what the exemption notice states and means.

The notice includes the following statement which seems clear:

The agencies are providing relief for these transactions from appraisal requirements under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and its implementing regulations.

 

[timd354]

I'm reading it the same way you are, Mark.
I don't believe the OCC has anything to do with Fannie/Freddie or their DU streamlined process.

As I recall, there was a similar order that came out after Katrina.

My recollection of there being an exemption after Katrina matches your recollection.