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Advantage Consulting & Training
commercial lenders, CRE lenders, credit analysts, lending managers and credit officers, loan review specialists, mortgage bankers, private bankers, small business lenders, special assets officers
10:30 am-12:00 pm CT
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 the current rules and guidelines that apply to the review process. For instance, did you know that in multiple sets of guidelines and FAQs that our regulators encourage us to have multiple levels or review intensity? By the way, having multiple levels in place helps build personnel back-up and a clear path to train those that are new to the processing 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:
• 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 scope of work, 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
• Review outcomes, and ideas on when and how to request revisions or corrections to the report
• Issues with screening for USPAP compliance as of January 1, 2020