The Federal Reserve Board ("FRB"), OCC and FDIC (collectively, the "regulators") 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 was published in the Federal Register.
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 is effective October 16, 2020 through December 31, 2020.
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