In response to stay-at-home orders and social distancing recommendations caused by the COVID-19 crisis, some banks will soon be able to postpone appraisals on commercial or residential real estate transactions up to 120 days after closings, according to an announcement by three federal banking regulators Tuesday.

The Board of Governors of the Federal Reserve System (the Fed), the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) announced the changes, according to HousingWire.com. The rules affect banks governed by the Fed, FDIC and the OCC, and only apply to loans that will be kept in those banks’ portfolios. The change will become official once it is put into the Federal Register and will last through the end of 2020 unless it is extended further.

Loans guaranteed or sold by Fannie Mae, Freddie Mac, the Federal Housing Administration or the U.S. Department of Housing and Urban Development will still need to follow the appraisal guidelines of those respective agencies. However, the agencies recently modified their own appraisal requirements in response to the pandemic.

The changes will not include “transactions for acquisition, development and construction of real estate,” HousingWire.com reported.

REALTORS® who want more details can read the 22-page “interim final rule with request for comments.”