This four-part program will be: October 17, 24 & 31, November 7, 10:30 a.m.-12:00 p.m

Description:

An important part of the commercial real estate (CRE) lending process is the review and interpretation of the property appraisal. This program briefly reviews some issues of the entire appraisal process, such as selecting and engaging a qualified appraiser, but focuses primarily on reviewing the report for integration into the overall credit analysis. Fundamental principles and features of appraisals are covered, the December 2010 Interagency Guidelines (regulators may cite Reg. H, Reg. Y, SR 10-16 and others, but all of them ultimately refer back to the 2010 Interagency Guidelines), as well as the primary analytical techniques such as net operating income (NOI) and direct capitalization for income-producing properties.

Specific subjects that will be covered during the seminar include:

  • Why you should want to review appraisals (beyond just satisfying regulatory requirements)
  • Types or levels of reviews: Administrative/compliance, technical, and third party
  • Practical suggestions for setting loan-size limits to trigger the levels of review
  • Administrative/compliance reviews: FIRREA and other regulatory issues and a sample review checklist
  • Technical reviews: Appraiser independence and competence, types of reports by format and the 2006 scope of work rule/changes, details on the approaches to value (cost, income and market sales), plus a sample review checklist
  • Third party review by appraisers: How appraisers are regulated via USPAP, using USPAP
  • Standard 3 to get a third party review done and example comments from reviews – comments that will help you improve your reviews
  • How the three approaches to value (income, cost and market/comps) work
  • Review outcomes, and ideas on when and how to request revisions or corrections to the report
  • Guidelines for evaluations in lieu of full appraisals
  • Guidelines for reviewing, validating and using existing appraisals
  • Other issues as required by the December 2010 interagency guidelines

Target Audience: 

Consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers.


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