Stay the course: AI urges NCUA to hold line on credit union construction loans.
In an Aug. 31 comment letter on the National Credit Union Administration's proposed rule to expand credit union business lending, the Appraisal Institute asked the NCUA to mirror regulations and guidance issued by federal bank regulatory agencies relative to construction and development loans. AI also asked for meaningful oversight should credit unions expand their lending footprint.
Specifically, AI urged the NCUA to avoid creating competitive advantages or disadvantages with banks relative to examination procedures and protocols in real estate loans, stating, "Our experience is that most credit unions do not have functioning real estate risk management operations, including appraisal departments or operations. This would need to change if credit unions were to expand into this area."
AI also asked the NCUA to look at the work of other federal bank regulatory agencies for regulations relating to construction and development loans. "Relative to this set of loans, we see little value in veering from well-established policies and procedures maintained by the federal bank regulatory agencies," AI wrote.
Read the Appraisal Institute's letter to the National Credit Union Administration at www.appraisalinstitute.org/assets/1/7/ALto_NCUA_on_Business_and_ Cominercial_Lending-Final.pdf. Read the NCUA's proposed rule at www.regulations. gov/#!documentDetail;D=NCUA-2015-0031-0001
|Printer friendly Cite/link Email Feedback|
|Date:||Sep 22, 2015|
|Previous Article:||Coming soon: FHFA considering appraisal representations and warranties.|
|Next Article:||The witness trap: how appraisers can avoid transforming from expert witness to defendant.|