April 6, 2018
The Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have agreed with U.S. bank regulators to ease commercial real estate lending rules.
Banks once required an independent third-party appraisal on property worth $250,000 or more before they could lend against it, but with the new rules, this requirement stands true for property valued at $500,000 or more. Regulators had initially requested the amount to be $400,000, in line with inflation, but trade groups and lenders requested more leniency.
The agencies wrote, “The increased threshold will not pose a threat to the safety and soundness of financial institutions.”
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