Appraisals Waived On AllHurricane-Affected Properties
WASHINGTON - (10/07/05) -- The Federal Reserve issued anemergency order Thursday waiving all real estate appraisalrequirements for banks and credit unions in the hurricane-ravagedareas of Louisianna, Mississippi, Alabama and Texas for the nextthree years. The federal regulators all agreed that the devastationwrought on hundreds of thousands of properties by hurricanesKatrina and Rita have so disrupted the real estate markets in theaffected areas that it will be impossible for lenders to complywith regulatory requirements for proper appraisals. NCUA and thebanking regulators decided that the disruption and the inability toperform proper appraisals would otherwise impede lending forreconstruction and rehabilitation of the damaged areas. To qualifyfor the waiver, the transaction must be on property located in adesignated disaster area; the property was directly impacted by oneof the two massive storms; there is a binding commitment to fundthe transaction that is made within three years after the disasterwas declared.