Understanding Appraisals & Appraisal Review Concepts for Lenders

Duration: 90 Minutes
Understanding Appraisals & Appraisal Review Concepts for Lenders is an introductory webinar, providing a broad overview of the appraisal industry and how it intersects with financial institutions and their lending activities for real estate secured loans. No advance understanding of appraisal program regulations or appraisal theory is required, but some exposure to your organization's appraisal function would be beneficial; though not a requirement.
Interagency Appraisal
Instructor: Heidi Lee
Product ID: 503005
Objectives of the Presentation
  • Gain insights into the appraisal process: a general understanding of what appraisers can and cannot do
  • Learn how the regulators view the appraisal selection process and review methodology
  • Learn what the regulators expect of appraisal reviewers
  • Learn basic review mechanics and the do's and don'ts of reviewing
  • Get tips for dealing with appraisers when the review identifies issues of concern
  • Learn methods to improve the quality of appraisal reports submitted to your financial institution
Why Should you Attend
The Interagency Appraisal and Evaluation Guidelines have put appraisals and their review front-and-center for financial institutions and examiners. Initially, the regulators focused on appraisal function compliance within larger banks. In recent years, however, examiners have shifted their focus to smaller institutions. As a result, appraisal function compliance has become a larger issue for community banks. This webinar lays the groundwork for better appraisal review compliance.

Areas Covered
  • Appraising is more than math or the mechanics of data analysis; the appraisal industry has developed a language of defined terms and a specific process that appraisers must follow
  • The webinar touches on the economics of real estate markets: the impact of the Principals of Value, the Forces of Value, and real estate market life cycles
  • Regulatory requirements for reviewer independence and reviewer qualifications
  • Scaling the review assignment with the appraisal assignment and the transaction risk
  • Best practices for reviewers
  • Acceptable and unacceptable reviewer communication methods
Who will Benefit
  • Chief Appraisers and Appraisal Managers
  • Employees who bid and engage appraisers for the bank
  • Employees who review commercial appraisal
  • CEOs and Presidents of community banks
  • Credit Administration Officers
  • Credit Officers involved in the appraisal function
  • Credit Reviewers and other credit side personnel
  • CRE Lending Group Managers
Topic Background
Financial institutions (banks and credit unions) make loans of all sizes. Collateral is obtained to provide the institution with some form of repayment in the event of borrower default. As such, collateralized loans are considered to have lower risk than unsecured loans and longer amortization periods are made available when long-lasting real estate collateral is provided. But just having collateral does not necessarily ensure lower risk for the institution. Real estate values shift, due to market forces and specific property issues. Thus, bank regulators have embedded the valuation process within all real estate loan production. Further, institutions are mandated to install processes and personnel that can identify risk levels and effectively manage the appraisal program with greater due diligence when risk is higher. But real estate appraising is a different industry than banking, so institutions often face a steep learning curve in efforts to comply with appraisal regulations. This webinar provides introductory information for banks and credit unions to work toward meeting the regulator's appraisal program requirements.
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Recorded Session for one participant
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Live Session - How it works
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  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account 24 hours after the completion of the session
  • Please let us know your thoughts and views at the end of the webinar, your valuable feedback will help us improve
Recorded Session - How it works
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  • Upon purchase of the recorded session a link will be updated on your OCP Account within 24 hours
  • Please click on the link to access the Recorded Session
  • Presentation handouts in downloadable PDF format will be updated on your OCP Account within 24 hours of the purchase of the product
  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account after 48 hours of the product Purchase
  • Please share your valuable Feedback at the end of the session
Instructor Profile:
Heidi Lee is a commercial review appraiser with 18 years' experience at Whitney National Bank, a mid-sized financial institution. Since retiring from Whitney Bank in 2011, Ms. Lee has founded Appraisal Review & Consultation to share her skills and appraisal regulatory knowledge base with other financial institutions. Her firm offers commercial review services and appraisal policy/procedures assistance to small- and medium-sized banks across the country.

Ms. Lee has earned the MAI and the AI-GRS designations issued by the Appraisal Institute and the MRICS designation issued by the Royal Institution of Chartered Surveyors. She holds a general appraiser certification in Louisiana and Texas and was appointed by two governors to serve on the Louisiana Real Estate Appraisers Board. Additionally, she is a member of RMA (Risk Management Associates), with special interest in credit risk and operational risk.
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