During their monthly meeting yesterday, the NCUA board of directors approved a final rule amending the agency’s real estate appraisal requirements for certain transactions.
The final rule, which takes effect 90 days after publication in the Federal Register, increases to $1 million from $250,000 the threshold for required appraisals in commercial real estate transactions. It also reorganizes the appraisal regulation in an effort 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 board also approved a final rule updating the agency’s fidelity bond requirements for credit unions and corporate credit unions, and proposed an interpretive rule and policy statement that would provide expanded “second chance” opportunities for individuals convicted of certain minor offenses.
The fidelity bond final rule is intended to strengthen oversight of fidelity bond coverage by a credit union’s board of directors and does not require a credit union’s supervisory committee to review its fidelity bond renewal. It creates a one-year discovery period following a credit union’s liquidation and codifies an Office of General Counsel legal opinion permitting a natural-person credit union to extend bond coverage to certain credit union service organizations. The rule also clarifies which documents are subject to the NCUA board’s approval and requires all bond forms receive approval every 10 years.
For more information on yesterday’s board meeting, visit NCUA’s website.