To alleviate the challenges faced by homebuyers during the coronavirus pandemic, borrowers with good credit seeking a mortgage loan can now defer appraisals for up to 120 days after closing on a property, according to a joint statement from The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. Though the new rule only applies to those working through those three bodies, it is in line with other financial giants such as Fannie Mae and Freddie Mac relaxing their own policies that allow some borrowers to do exterior-only appraisals or waive them altogether.
Three federal banking regulators came together this week to announce a temporary suspension of appraisals for credit-worthy borrowers while the country prepares for the economic impact of COVID-19. The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a joint statement saying, “...the completion of appraisals and evaluations required under the agencies’ appraisal regulations may be deferred by a regulated institution for up to 120 days from the date of closing. The temporary deferrals apply to all residential and commercial real estate secured transactions, including loans for new money or refinancing transactions...”.
The statement goes on to list the exceptions, most notably for loans obtained for new construction.
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