TITLE 7. BANKING AND SECURITIES

PART 6. CREDIT UNION DEPPARTMENT

CHAPTER 91. CHARTERING, OPERATIONS, MERGERS, LIQUIDATIONS

SUBCHAPTER G. LENDING POWERS

7 TAC §91.708

The Credit Union Commission (the Commission) adopts amendments to Texas Administrative Code, Title 7, Chapter 91, Subchapter B, §91.708, Real Estate Appraisals or Evaluations, without changes to the proposed text as published in the May 22, 2020, issue of the Texas Register (45 TexReg 3405). The amendments will not be republished.

The adopted rule reflects amendments made to the National Credit Union Administrations Rules and Regulations Part 722 (12 CFR Part 722) which aligns with requirements of other depository financial services providers. The adopted rule increases the threshold at which licensed appraisals are required when underwriting consumer real estate loans. The adopted rule requires consumer real estate loans at or exceeding $400,000 to have an appraisal conducted by a state licensed appraiser, an increase from the current $250,000 limit. The adopted rule is necessary for state-chartered credit unions to maintain competitiveness with federally-chartered credit unions, and to ensure credit unions are subject to the same standards that are applied to federal and state banking industries.

The Commission received no written comments on the proposed amendments to the rule.

The rule changes are adopted under Texas Finance Code, Section 15.402, which authorizes the Commission to adopt reasonable rules for administering Texas Finance Code, Title 2, Chapter 15 and Title 3, Subtitle D, and which authorizes the Commission to adopt rules that promote competitive parity of credit unions with other depository financial institutions.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 10, 2020.

TRD-202003228

John J. Kolhoff

Commissioner

Credit Union Department

Effective date: August 30, 2020

Proposal publication date: May 22, 2020

For further information, please call: (512) 837-9236