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Federal Banking Agencies Propose Exempting CRE Property Sales of $400,000 or Less from Appraisals

The Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency proposed raising the price threshold for commercial real estate appraisals.

Responding to investor and lender concerns regarding the time and costs associated with completing smaller real estate transactions, the Federal Reserve Board, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency today proposed raising the sale price threshold for commercial real estate transactions requiring an appraisal to more than $400,000 from the current level of $250,000.

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