The National Credit Union Administration approved an ICBA-opposed final rule that quadruples the threshold at which credit union commercial real estate transactions are exempt from appraisals. The NCUA board vote increased the threshold from $250,000 to $1 million, double the banking industry’s $500,000 CRE appraisal threshold.
In a statement, ICBA said it strongly opposes the move, noting that the NCUA is once again pushing the envelope to benefit the industry it is charged with regulating. “Today’s 2-1 vote by the divided NCUA board is just the latest example of the NCUA acting as an advocate for tax-exempt credit unions,” ICBA President and CEO Rebeca Romero Rainey said.
Community bankers can continue using ICBA’s Be Heard grassroots action center to urge Congress to investigate the trend of large credit unions buying up community banks. ICBA is also encouraging community bankers to send in examples of egregious credit union actions to email@example.com and to use ICBA’s customizable op-ed to raise awareness of the acquisition trend.