Some Appraisals Can Be Delayed Until After Closing

April 15, 2020

Federal banking regulators issued new guidance late Tuesday that will allow banks to postpone an appraisal on a residential or commercial property for up to 120 days after the mortgage has closed. This rule applies only to mortgages that the banks intend to keep in their portfolios.

The rule change will be in effect until Dec. 31.

Federal banking regulators said the change was made to “extend financing to creditworthy households and businesses quickly in the wake of the national emergency” during the COVID-19 pandemic.

The new rule was announced by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency.

Meanwhile, mortgages that are sold or guaranteed by the Federal Housing Administration, Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, and Freddie Mac will continue to need an appraisal before closing. However, those agencies have eased their appraisal standards as well. Learn more at