Appraisals Waived On AllHurricane-Affected Properties

October 07, 2005, 1:00 a.m. EDT 1 Min Read

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.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Stablecoin

Inside Paxos and Aleo's 'stablecoin salaries'

The two companies are collaborating on making the digital asset private for payroll and other business transactions. While it's unusual, as the most well-known stablecoins are on public ledgers, tech firms are warming to the idea.

By John Adams

29m ago
Zions Bancorp.

Zions is 'confident' in credit despite Wall Street battering

Following a $60 million credit hit, the Salt Lake City bank said that it hasn't found any other related problem loans.

By Catherine Leffert

9h ago
M&A

Two Illinois community banks agree to merge in $170M deal

The parent company of Heartland Bank and Trust plans to acquire a smaller bank based in Carlinville, Illinois. The acquisition would give the buyer added heft in Central Illinois, as well as the Chicago and St. Louis metro areas.

By Kevin Wack

October 20
CDFIs

Banks urge Trump admin to restore CDFI Fund staff, funding

Six trade groups warned the administration layoffs and funding freezes could dampen lending, threatening the administration's goal of economic growth.

By Ebrima Santos Sanneh

October 20
M&A

Eastern in Mass. should sell itself: Activist investor

The Boston-based bank is the second bank in three months to face pressure to sell by the activist investor group HoldCo Asset Management.

By Allissa Kline

October 20
Regulation and compliance

Gould focuses on OCC role in debanking fracas

Comptroller of the Currency Jonathan Gould said in an interview with American Banker that his agency is looking at whether its own internal guidance may have contributed to a climate where banks feel the need to "cite everything" to avoid supervisory penalties.

By Debra Cope

October 20