LOS ANGELES, CA – In a move that will allow banks and credit unions to lend and modify loans in areas devastated by wildfires and straight-line wind damage, four federal financial institution regulatory agencies have temporarily relaxed appraisal requirements in Los Angeles County, California.
According to a joint release issued by the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC), the action is expected to facilitate recovery efforts in the affected areas.
The agencies have effectively paused certain appraisal requirements for real estate-related transactions in Los Angeles County, allowing financial institutions to work with families and businesses without obtaining an appraisal. However, banks and credit unions will still be required to determine that the value of the real estate supports their decision to enter into the transaction.
The move is expected to reduce loan processing times, helping to facilitate recovery from the disaster. Financial institutions will be better able to lend or modify loans in areas where wildfire and straight-line wind damage has made appraisals challenging to obtain.
The action will expire on January 8, 2028, and the agencies will monitor institutions’ real estate lending practices to ensure the transactions are being conducted in a safe and sound manner.
As part of their efforts to support the affected communities, the agencies are also urging financial institutions to exercise caution and prudence when engaging in real estate lending activities in the affected areas.
The joint release was issued on April 15, 2025, and can be found on the FDIC’s website.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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