Regulatory Alerts2025-04-18 | 2025-06748Temporary Exceptions to FIRREA Appraisal Requirements in Los Angeles County as Affected by California Wildfires and Straight-Line Winds
The OCC, Federal Reserve, FDIC, and NCUA issued a joint order granting temporary exceptions to FIRREA appraisal requirements for real estate transactions in Los Angeles County affected by January 2025 wildfires and straight-line winds. The agencies determined that waiving these requirements facilitates disaster recovery and remains consistent with safety and soundness, provided the property is located in the designated area and a binding funding commitment exists between January 8, 2025, and January 8, 2028. This relief expires on January 8, 2028, exactly three years after the President declared the major disaster, allowing institutions to proceed with transactions without standard appraisals while maintaining management and regulatory oversight.