FDIC Proposal Exempts Residential Real Estate Transactions of $400,000 or Less from Appraisal

On November 20th, the Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking that will raise the threshold for residential real estate transactions that require an appraisal to $400,000, from the current level of $250,000. This proposal is a response to concerns that the current threshold is not reflective of price appreciation and creates unnecessary time and cost burdens for residential real estate transactions. Comments on this proposal will be accepted for 60 days in the Federal Register.

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