The NCUA board passed a final real estate appraisals rule, approved an exemption from the Bank Secrecy Act’s Customer Identification Program and heard a briefing on the new MERIT Examination system at a recent meeting.
The appraisals final rule adopts the interim final rule approved by the board in June without change. It defers the requirement to obtain an appraisal or written estimate of market value for up to 120 days following the closing of certain residential and commercial real estate transactions, excluding transactions for acquisition, development, and construction of real estate.
It will be effective as soon as it is published in the Federal Register and remain in effect through Dec. 31.
The board also authorized an order granting an exemption from the BSA CIP requirements for certain loans to facilitate purchases of property and casualty insurance policies. This is a joint order together with the other federal financial regulators expanding a related order issued in September 2018.
The briefing on the MERIT, Modern Examination and Risk Identification Tool, demonstrated several benefits, including providing users the ability to:
The second release of MERIT was deployed to pilot users in July, but wider rollout was postponed due to the pandemic. Instead, NCUA began an expanded pilot this month with over 100 additional NCUA and state supervisory agency users and 17 credit unions to gain additional feedback.
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