Regulators mull first appraisal threshold change in two decades

Miami /
Mar.March 20, 2017 03:15 PM

From the New York website: A possible change to appraisal requirements could help small-business borrowers, but hurt appraisers.

U.S. bank regulators may increase the commercial loan threshold for requiring appraisals from $250,000 to $400,000, Bloomberg reported. The change could make it easier for small-business owners to secure financing and also ease costs since appraisal fees are typically well over $2,000.

The Independent Community Bankers of America called for an even higher threshold of $500,000 last year, saying that a change was needed “to reflect the rising costs of real estate particularly in many urban markets.” The minimum for residential real estate would remain at $250,000.

President Donald Trump met with community bankers last week to discuss possible ways to clear lending obstacles. Regulators haven’t changed the appraisal threshold in more than two decades.

“It hasn’t been raised since 1994, so this adjustment really amounts to a correction,” Rod Alba, senior vice president for real estate finance at the American Bankers Association, told Bloomberg.

At the same time, the change could put a lot of appraisers out of work. Karen Mann, an appraiser who works in California, said appraisals are the best way to measure a property’s worth.

“There are a lot of things you don’t know by not having somebody go out and inspect the property,” she said. [Bloomberg]  Kathryn Brenzel 


Related Articles

arrow_forward_ios
Developer Jeffrey Soffer and the JW Turnberry resort at 19999 West Country Club Drive in Aventura (Getty, TripAdvisor)
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Donald Trump and Grant Cardone (Cardone Enterprises)
Presidential surprise: Donald Trump kicks-off Grant Cardone’s 10X Growth Conference
Presidential surprise: Donald Trump kicks-off Grant Cardone’s 10X Growth Conference
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
“Record-setting” market: Real estate powerhouses talk tech, infrastructure, development and hot housing market at TRD’s Miami event
From left: The Real Deal editor-in-chief Stuart Elliott, Miami-Dade County Mayor Daniella Levine Cava, City of West Palm Beach Mayor Keith James, City of Boca Raton Mayor Scott Singer, City of Miami Mayor Francis X. Suarez and City of Fort Lauderdale Mayor Dean Trantalis
“We’re crushing it, and we’re going to continue crushing it.” South Florida mayors talk growth at TRD Miami event
“We’re crushing it, and we’re going to continue crushing it.” South Florida mayors talk growth at TRD Miami event
Miami Beach mayor facing ethics complaint for Ocean Drive meeting
Miami Beach mayor facing ethics complaint for Ocean Drive meeting
Miami Beach mayor facing ethics complaint for Ocean Drive meeting
Aventura Mayor Enid Weisman (Facebook via Weisman, Getty)
Aventura votes to require HOAs to submit critical reports within 48 hours
Aventura votes to require HOAs to submit critical reports within 48 hours
Brightline CEO Patrick Goodard with the Fort Lauderdale station (Brightline)
FECI obtains $200M in financing tied to sites near Brightline stations
FECI obtains $200M in financing tied to sites near Brightline stations
Blink’s Michael Farkas and Lionstone’s Diego Lowenstein with 605 Lincoln Road (Google Maps)
Blink buys office condo on Miami Beach’s Lincoln Road for new HQ
Blink buys office condo on Miami Beach’s Lincoln Road for new HQ
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...