🏚️Temporary Appraisal Exemptions for California Wildfire Recovery
Temporary Exceptions to FIRREA Appraisal Requirements in Los Angeles County as Affected by California Wildfires and Straight-Line Winds
Summary
The Depository Institutions Disaster Relief Act of 1992 (DIDRA) authorizes the agencies to make exceptions to statutory and regulatory appraisal requirements under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) relating to transactions involving real property located within an area in a State or territory declared to be a major disaster by the President. In this statement and order, the agencies exercise their authority to grant temporary exceptions to the FIRREA appraisal requirements for real estate-related financial transactions, provided certain criteria are met, in Los Angeles County, California following the major disaster declared by the President as a result of wildfires and straight-line winds. The expiration date for the exceptions is January 8, 2028, which is 3 years after the date the President declared the major disaster.
Agencies
- Federal Reserve System
- Treasury Department
- Comptroller of the Currency
- Federal Deposit Insurance Corporation
- National Credit Union Administration
Business Impact
$$$ - High
The regulatory text provides temporary exceptions to appraisal requirements due to major disaster conditions, which will enable quicker real estate transactions and facilitate financial assistance for recovery efforts. This potentially stabilizes the market and promotes business operations in affected areas.