Lack of experts? NCUA reminds credit unions of their options

Last week, the NCUA joined a cross-agency consultation on the availability of reviewers. While the Guide does not provide additional guidance, it does attempt to alert credit unions to potential solutions that exist to problems with the availability of valuers.

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) requires the NCUA to establish valuation standards for all federal transactions. Part 722 of the NCUA regulations contains these standards. In general, the rules require that the assessment is carried out by a state-certified or state-approved expert. Whether the appraiser needs to be certified or licensed depends on the type of transaction. The multi-agency assessment and assessment guidelines provide an overview of the applicable rules and guidelines for developing an assessment program, selecting an assessor, and obtaining and reviewing assessments.

As part of the review of the Economic Growth Reduction Act and regulatory papers, commentators raised concerns about the timeliness of obtaining an assessment. Commentators attributed the problem to problems with the availability of state-certified and state-licensed reviewers. This seemed to be of particular concern in rural areas. The latest advisor explains the options of a credit union in the event that a certified or licensed appraiser is not available. In certain situations, FIRREA allows credit unions to use appraisers who have received a temporary professional license or a temporary waiver instead of a state certificate or license. The advisory explains both the permission and the waiver.

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