Joint Release
Board of Governors of the Federal Reserve
System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release July 19, 2017
Media Contacts:
FDIC Julianne Fisher Breitbeil (202) 898-6895
Federal Reserve Darren Gersh (202) 452-2955
OCC Stephanie Collins (202) 649-6870
FDIC: PR-55-2017
Last Updated 7/19/2017 communications@fdic.gov
Federal Banking Agencies Issue Notice of Proposed Rulemaking to Exempt
Commercial Real Estate Transactions of $400,000 or Less from Appraisal
Requirements
WASHINGTON — Responding to concerns about the time and cost associated with completing real
estate transactions, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the
Office of the Comptroller of the Currency today issued a notice of proposed rulemaking to raise the
threshold for commercial real estate transactions requiring an appraisal to $400,000.
The agencies believe raising this threshold for commercial real estate transactions from the current level
of $250,000 will significantly reduce the number of transactions that require an appraisal and will not pose
a threat to the safety and soundness of financial institutions.
Instead of an appraisal, the proposal would require that commercial real estate transactions at or below
the threshold receive an evaluation. As defined by agency guidance, evaluations are less detailed than
appraisals, do not require completion by a state licensed or certified appraiser, and provide a market
value estimate of the real estate pledged as collateral.
During the Economic Growth and Regulatory Paperwork Reduction Act review process, financial industry
representatives raised concerns that the current exemption level had not kept pace with price
appreciation in the commercial real estate market. This proposal responds, in part, to these concerns.
Comments will be accepted for 60 days from publication in the Federal Register.
Attachments:
Notice of Proposed Rulemaking to Implement an Increase in the Appraisal Threshold for Commercial
Real Estate Transactions
Statement of FDIC Chairman Martin J. Gruenberg
###
Board of Governors of the Federal Reserve
System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release July 19, 2017
Media Contacts:
FDIC Julianne Fisher Breitbeil (202) 898-6895
Federal Reserve Darren Gersh (202) 452-2955
OCC Stephanie Collins (202) 649-6870
FDIC: PR-55-2017
Last Updated 7/19/2017 communications@fdic.gov
Federal Banking Agencies Issue Notice of Proposed Rulemaking to Exempt
Commercial Real Estate Transactions of $400,000 or Less from Appraisal
Requirements
WASHINGTON — Responding to concerns about the time and cost associated with completing real
estate transactions, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the
Office of the Comptroller of the Currency today issued a notice of proposed rulemaking to raise the
threshold for commercial real estate transactions requiring an appraisal to $400,000.
The agencies believe raising this threshold for commercial real estate transactions from the current level
of $250,000 will significantly reduce the number of transactions that require an appraisal and will not pose
a threat to the safety and soundness of financial institutions.
Instead of an appraisal, the proposal would require that commercial real estate transactions at or below
the threshold receive an evaluation. As defined by agency guidance, evaluations are less detailed than
appraisals, do not require completion by a state licensed or certified appraiser, and provide a market
value estimate of the real estate pledged as collateral.
During the Economic Growth and Regulatory Paperwork Reduction Act review process, financial industry
representatives raised concerns that the current exemption level had not kept pace with price
appreciation in the commercial real estate market. This proposal responds, in part, to these concerns.
Comments will be accepted for 60 days from publication in the Federal Register.
Attachments:
Notice of Proposed Rulemaking to Implement an Increase in the Appraisal Threshold for Commercial
Real Estate Transactions
Statement of FDIC Chairman Martin J. Gruenberg
###