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Financial Institution Letter
FDIC Issues Temporary Exceptions to Appraisal Requirements in Maui County as Affected by Hawaii Wildfires
Regulatory Relief


The FDIC is providing flexibility relative to appraisal requirements for real estate-related transactions in Maui County due to the Hawaii wildfires. The flexibilities may be exercised by any institution underwriting a real estate-related transaction in Maui County.

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions.


The FDIC is facilitating the recovery process in Maui County, which was declared to be a major disaster, by temporarily easing appraisal requirements for real estate-related financial transactions under the Financial Institutions Reform, Recovery, and Enforcement Act.

  • The exception expires three years after the date Maui County was declared a major disaster.
  • To qualify for the exception, an institution must determine that:
    1. The transaction involves real property located in the area designated as adversely affected by the major disaster.
    2. There is a binding commitment to fund the transaction1 that was entered into on or after August 10, 2023, but no later than August 10, 2026.
    3. The value of the real property supports the institution’s decision to enter into the transaction.
  • Transactions for which the financial institution relies on the appraisal exception must continue to be subject to review by management.
  • The FDIC will review an institution’s reliance on the appraisal exception during regularly scheduled examinations.
  • 1

    This relief also includes loans modified during the effective period of this order.

Related Topics
Appraisals and Other Valuation Products
Last Updated: March 13, 2024