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|
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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