The Federal Reserve Board ("FRB"), the OCC and the FDIC (collectively, the "regulators") adopted a final rule that allows financial institutions an additional 120 days following a real estate closing transaction to obtain an appraisal or evaluation of the property.
As previously covered, the final rule provides relief to financial institutions by allowing them to immediately lend money to creditworthy households and businesses during the COVID-19 pandemic. The regulators clarified, among other things, that the deferral of appraisal requirements under the final rule does not include "transactions for acquisition, development and construction of real estate."
The rule becomes effective upon publication in the Federal Register and will expire on December 31, 2020.
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