The Depository Institutions Disaster Relief Act of 1992 (DIDRA) allows agencies to temporarily suspend some appraisal requirements under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) for real estate transactions in disaster areas. Following the President's declaration of a major disaster in Los Angeles County, California due to wildfires and straight-line winds starting January 7, 2025, these exceptions have been granted for affected real estate transactions until January 8, 2028. The exceptions aim to facilitate recovery and are consistent with safe banking practices, as long as certain conditions are met, like having a commitment to fund transactions and ensuring the property's value is supportive.
Simple Explanation
When big fires and strong winds hit Los Angeles, special rules were made so banks could help people buy and sell houses there without waiting too long for paperwork. This helps everyone get back on their feet faster, just like when you quickly fix your toys after a storm so you can play again.