WASHINGTON — Recent steps allowing more lenders to skip outside appraisals are seen as removing a key hurdle to closings, but appraisers say they could be collateral damage from the deregulatory policies.
The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency released a proposal last month to raise the threshold for residential real estate transactions that require an appraisal from $250,000 to $400,000. Lenders would still be required to obtain an evaluation for sales under the $400,000 limit, which the agencies say would “reduce burden in a manner that is consistent with federal public policy interests.”