Commercial Real Estate Appraisals: Overview of Evaluations, Validations of Existing Appraisals and Third Party Review - Fa20

Course Length
90 mins

Instructor
Richard Hamm

Price
$275.00

Upcoming Sessions

Description

Presenter: Richard Hamm

This 90-minute program will be presented live on: November 10, 10:30 a.m. - 12:00 p.m. Central Time
Recording available through: February 10, 2021
Price: $275

 

An important part of the commercial real estate (CRE) lending process is to establish the value of the collateral, and in many cases, the value does not need to come from a new appraisal. This program reviews  these options that have been in place since the initial set of inter-agency appraisal guidelines in 1994. These options typically involve work internally by bankers. At the other end of the spectrum, some projects are very risky or the dollar amount warrants a review of the valuation by third-party appraiser. How does that work and what can bankers learn from the review appraiser’s approach?

Specific subjects that will be covered during the seminar:

  • General situations where an appraisal is not required (exemptions)
  • Options for determining value when the loan is exempt from requiring a new appraisal
  • Situations where portfolio or market conditions might warrant a new appraisal, even in an exempt situation
  • Regulatory requirements for internal evaluations and a sample form
  • Key components in validating an existing appraisal and a sample form
  • Two situations that make a validation a difficult option
  • Types or levels of reviews: Administrative/compliance, technical, and third party
  • Practical suggestions for setting loan-size limits to trigger the levels of review
  • Sample comments from a review by a third-party appraiser, and how these observations often differ from typical banker review points – what can bankers learn from the third-party approach?
  • Practical issues with finding appraisers to do reviews and/or appraisal management companies (AMCs)
  • What is Uniform Standards of Professional Appraisal Practice (USPAP) Standards Rule 3?
  • Review outcomes, and ideas on when and how to request revisions or corrections to the report

Target Audience: CRE lenders, commercial lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers

Related GSB Online programs/topics:

  • CRE Appraisals: Overview of Rules/Guidelines and the Review Process
  • CRE Appraisals: Approaches to Value De-Mystified
  • CRE Appraisals: Key Appraisal Components Beyond the Approaches to Value

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