To help facilitate recovery efforts from wildfires and straight-line wind damage in Los Angeles County, Calif., four federal financial institution regulatory agencies temporarily paused certain appraisal requirements for real estate-related transactions.

The Federal Deposit Insurance Co., the Federal Reserve Board, the National Credit Union Administration and the Office of the Comptroller of the Currency took the action that is expected to allow banks and credit unions to work with families and businesses without obtaining an appraisal.

Banks and credit unions will still be required to determine that the value of the real estate supports the institution’s decision to enter into the transaction.

As a result of this action, financial institutions will be better able to lend or modify loans in areas where wildfire and straight-line wind damage has made appraisals challenging to obtain, according to a joint press release from the agencies. This action is also expected to reduce loan processing times, helping to facilitate recovery from the disaster.

This action will expire on Jan. 8, 2028.