The US Agencies (FED, FDIC, and OCC) proposed to raise the threshold for commercial real estate (CRE) transactions requiring an appraisal to USD 400,000, from the current threshold of USD 250,000. The agencies believe raising this threshold for commercial real estate transactions will significantly reduce the number of transactions that require an appraisal and will not pose a threat to the safety and soundness of financial institutions. Comments will be accepted for 60 days from the publication of this notice in the Federal Register.
The proposal would require that commercial real estate transactions at or below the threshold receive an evaluation, instead of an appraisal. Evaluations are less detailed than appraisals, do not require completion by a state licensed or certified appraiser, and provide a market value estimate of the real estate pledged as collateral, as defined by agency guidance. This proposal responds, in part, to the concerns of the financial industry representatives that the current exemption level had not kept pace with price appreciation in the commercial real estate market.
Related Link: Notice of Proposed Rulemaking (PDF)
Keywords: Americas, United States of America, Banking, CRE, US Agencies
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.