Agencies pause appraisal requirements in California disaster areas

The FDIC, Federal Reserve Board, NCUA, and OCC have jointly announced they have temporarily paused certain appraisal requirements for real estate-related transactions, to help facilitate recovery efforts from wildfires and straight-line wind damage in Los Angeles County, California, this year, .

The agencies' action 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 pause should make financial institutions better able to lend or modify loans in areas where wildfire and straight-line wind damage has made appraisals challenging to obtain. This action is also expected to reduce loan processing times, helping to facilitate recovery from the disaster.

The temporary pause order will be effective upon its publication in the Federal Register. It will expire on January 8, 2028, three years after the president declared the relevant area a major disaster. The agencies will monitor institutions' real estate lending practices to ensure that transactions are being conducted in a safe and sound manner.

• OCC Bulletin 2025-7, "Real Estate Appraisals: Temporary Exceptions to Appraisal Requirements in Areas Affected by Los Angeles County, California, Wildfires and Straight-Line Winds"
• FDIC FIL-10-2025, "FDIC Issues Temporary Exceptions to Appraisal Requirements in Los Angeles County as Affected by California Wildfires and Straight-line Winds"
• UPDATE ON PUBLICATION AND EFFECTIVE DATE: Published [90 FR 16455] on 4/18/2025, and effective on publication as noted above.