BISMARCK, N.D. (AUG. 26, 2019) – North Dakota recently became the first state in the nation to receive a federal waiver designed to help consumers by reducing wait times for real estate appraisals.
The North Dakota Department of Financial Institutions (DFI), North Dakota Bankers Association and Gov. Doug Burgum requested the waiver, seeking temporary relief for consumers as the state experiences a shortage of credentialed appraisers.
The Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FFIEC) has temporarily waived the credentialing requirements for federally related transactions under $500,000 for residential real estate and under $1 million for agricultural and commercial real estate in North Dakota.
Under the waiver, North Dakota banks and credit unions can appoint someone other than a licensed or credentialed appraiser to conduct assessments for real estate mortgage loans issued by banks or credit unions. All appraisals still must comply with the Uniform Standards of Professional Appraisal Practice.
This is the first time a state has been granted such a waiver since the option became available in 1989, DFI Commissioner Lise Kruse said.
“The Department of Financial Institutions is fully committed to working with the depository institutions and the appraisal industry to address the appraisal delays, as the health of both industries is important to our citizens and our economy,” Kruse said. “This is a call for all of us – appraisers, financial institutions and state and federal regulators – to come together to find a long-term solution for timely appraisals and help consumers in North Dakota.”
North Dakota currently has a shortage of appraisers who meet federal law requirements, which has caused assessments in some parts of the largely rural state to take up to three months. The waiver aims to improve the timeliness of real estate transactions for at least the next year; the waiver may be extended for another year if certain conditions are met.
Banks and other financial institutions must appoint well-qualified people to conduct the appraisals and ensure the loan process is efficient. As the state regulator, the DFI will continue to enforce the law when there are loan violations, including missing appraisals.
A link to the Order can be found here.
The ASC has published in today’s Federal Register, a 30-day Notice for Comment for a Temporary Waiver Request from the State of North Dakota, the North Dakota Department of Financial Institutions and the North Dakota Bankers Association. The comment period will close on July 1, 2019. The Notice can be viewed here. Comments can be viewed here by searching for Docket Number AS19-04.
Please give particular attention to the four questions at the end of the Notice.
On March, 29, 2019, Commissioner Lise Kruse issued an Order suspending Charity Erickson, a former employee of Citizens Community Credit Union, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions. The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law. A copy of the Order may be viewed here: Order
The response to the request made by the Appraisal Subcommittee on September 7, 2018, for clarification and additional information to our August 1, 2018, submission has been issued. Specifically, the request was for confirmation of the relief being sought is within the Appraisal Subcommittee's statutory authority, additional documentation of the scarcity of appraisers in markets throughout the State, and documentation relating to the significant delays caused by this scarcity. Governor Burgum, Commissioner Kruse, and the North Dakota Bankers Association have issued the response jointly. Click here to view the response.
Several changes have been made during North Dakota's 66th Legislative Session that impact non-depositories. Letters to the industries summarizing these changes can be found here for money brokers, here for money transmitters, here for collection agencies, and here for deferred presentment service providers.
The widely used reference rate known as the London Interbank Offered Rate (LIBOR) is scheduled to go out of existence. Click here to read a letter from Commissioner Kruse regarding LIBOR and recommended actions to manage the transition.
On January 15, 2019, Commissioner Lise Kruse issued an Order suspending Bobbi Miller, a former employee of Kirkwood Bank and Trust, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions. The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law. A copy of the Order may be viewed here: Order
Federal agencies issue a joint statement on banks and credit unions sharing resources to improve efficiency and effectiveness of Bank Secrecy Act Compliance. Click here to read the statement.
On July 26, 2018, Commissioner Lise Kruse issued an Order imposing a $2,000.00 civil money penalty against Kirk Wullweber of Minot, North Dakota. The Commissioner finds that Kirk Wullweber acted in willful violation of North Dakota law and a previously issued Departmental Order by engaging in unlicensed collection activity with a resident of North Dakota. The party listed in this Order has been provided the opportunity to appeal the assessment pursuant to law. A copy of the Order can be viewed here.
The State Credit Union Board will hold a public hearing to address proposed new rules and amendments to Title 13 of the North Dakota Administrative Code. The hearing will be held on August 30, 2018 at 1:30 pm in the Conference Room of the Department of Financial Institutions at 2000 Schafer Street, Suite G, Bismarck, North Dakota.