News & Media
woman doing house appraisal
Westend61 / Getty Images

Some Appraisals Can Be Delayed Until After Closing

Federal regulators will allow banks to postpone appraisals on residential or commercial property for up to 120 days after closing if the lender keeps the mortgage – but loans destined for FHA, Fannie Mae, Freddie Mac, etc., also have more lenient appraisal requirements.

WASHINGTON – Federal banking regulators issued new guidance last week that will allow banks to postpone an appraisal on a residential or commercial property for up to 120 days after the mortgage has closed in certain cases.

The rule applies only to mortgages that the banks intend to keep in their portfolios. It’s in effect until Dec. 31, 2020.

Federal banking regulators said the change was made to “extend financing to creditworthy households and businesses quickly in the wake of the national emergency” during the COVID-19 pandemic.

The new rule was announced by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency.

Meanwhile, mortgages sold or guaranteed by the Federal Housing Administration (FHA), Department of Housing and Urban Development (HUD), Department of Veterans Affairs, Fannie Mae, and Freddie Mac will continue to need an appraisal before closing.

However, those agencies have eased their appraisal standards as well. In select cases, for example, “qualifying principal or primary residence loans, desktop appraisals and exterior-only appraisals will now be acceptable.” The FDIC offers more information on its website.

Source: and “Banks Will Soon be Able to Postpone Some Appraisals Until 120 Days After the Mortgage Closes,” HousingWire (April 14, 2020)

© Copyright 2020 INFORMATION INC., Bethesda, MD (301) 215-4688