To help facilitate recovery efforts from wildfires in Hawaii last year, four federal financial institution regulatory agencies temporarily paused certain appraisal requirements for real estate-related transactions in Maui County, according to a release.
This temporary action by the Federal Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, the National Credit Union Administration and the Office of the Comptroller of the Currency is expected to allow banks and credit unions to work with families and businesses without obtaining an appraisal.
Banks and credit unions will still be required to determine that the value of the real estate supports the institution’s decision to enter into the transaction, the release added.
As a result of this temporary action, financial institutions will be better able to lend or modify loans in areas where wildfire damage has made appraisals challenging to obtain and reduce loan processing times, helping to facilitate recovery from the disaster.
This action will expire on Aug. 10, 2026. The agencies will monitor institutions’ real estate lending practices to help ensure the transactions are being originated in a safe and sound manner.