CRE Appraisals: Reviewing and Interpreting

Date:

Aug 2, 2022

Location:
8425 Woodfield Crossing Blvd., Suite 155E
Indianapolis, IN 46240

An important part of the commercial real estate (CRE) lending process is the review and interpretation of the property appraisal. This program covers the major issues of the entire appraisal process, including a brief review of selecting and engaging a qualified appraiser, but focuses more on reviewing the report for integration into the overall credit analysis. Fundamental principles and features of commercial appraisals are covered, as well as the primary analytical techniques such as net operating income (NOI) for basic, income-producing properties. This class will also provide an overview of the 2010 Interagency Appraisal and Evaluation Guidelines and the 2018 Frequently Asked Questions on the Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines, with tips for integrating the Guidelines and FAQs into your existing policies, plus other practical issues that community banks face, including screening the report for USPAP Compliance.

PDF BROCHURE

Agenda

8:30 a.m.          Registration & Continental Breakfast
9:00 a.m.          Program Begins
12:00 p.m.         Lunch (included)
1:00 p.m.          Program Resumes
4:00 p.m.          Program Adjourns

Topics
  • Why review appraisals? (Beyond regulatory requirements)
    • Administrative/compliance
      • 14 review points from FIRREA
      • What is FIRREA? (and other current regulatory guidelines, including latest appraisal guidelines issued in 2010 and FAQs issued in 2018)
      • The five minimum standards (derived from FIRREA), and what they really mean
      • Partial exemptions, full exemptions and minimum standards for the report
      • A sample compliance review checklist
    • Technical/internal (and typical commercial appraisal sections)
      • Letter of transmittal
      • Appraiser qualifications
        • Types of appraisals by scope (2006 scope of work rule that revised old definitions of complete and limited)
        • Types of appraisals by format (2014 revisions to old definitions of self-contained, summary and restricted use)
        • Assumptions and limiting conditions
        • Property identification and ownership interest
        • Approach to value
        • Reconciliation of values and value conclusion
        • A sample technical review checklist
    • Outside/third party
        • How Appraisers self-regulate via the Uniform Standards of Professional Appraisals Practice (USPAP) and state licensing
        • Getting another appraiser to do the review under USPAP 3 guidelines and sample review comments
  • Appraisal review outcomes: When to request revisions
  • Using your analysis to validate existing or older appraisals, with a suggested format for documenting your conclusions
  • Brief overview of guidelines for evaluations when an appraisal is not required 
Speaker

Richard Hamm has been training bankers for 30 + years, designing and delivering courses specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training.  His clients include:

  • National associations such as the American Bankers Association (ABA) and the Risk Management Association (RMA)
  • Regional banking schools such as the Graduate School of Banking at Wisconsin and other major schools
  • State banking and community banking associations in ten states
  • Plus individual banks

He is based in Huntsville, AL and has owned/operated Advantage Consulting & Training for 15+ years, after a 22-year banking career including senior positions in lending and credit, plus president during the formation of a community bank. He has BS and MBA degrees from the University of Alabama.

Additional Information
 WHO SHOULD ATTEND? 

CRE lenders, commercial lenders, credit analysts, mortgage lenders, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers involved in the CRE lending process.  Also intended for support personnel involved in the ordering and reviewing of commercial appraisals.

Fees

The following fees include the program, training  materials, continental breakfast, lunch and refreshments: 

IBA Members                                

$295 First Person                            

$245 Additional Member from Same Institution

This course will also be held on Tuesday, August 2, 2022 at the IBA Center for Professional Development, 8425 Woodfield Crossing, Suite 155E, Indianapolis, IN 46240 in person. Directions, a map & list of  local hotels are available by calling the IBA office at 317-387-9380. 

 

location

Indiana Bankers Association
8425 Woodfield Crossing Blvd., Suite 155E
Indianapolis, IN 46240


Association Contact

Elizabeth DeHaven, Education Manager -- edehaven@indiana.bank

Cancellation Policy

You will receive an e-mail confirmation at registration. If you have questions, contact Elizabeth DeHaven at 317-387-9380 or via e-mail at edehaven@indiana.bank.

Within three or more business days prior to the day of an educational program, no cancellation charge will be assessed. Within two days prior, 50% of the fee is assessed. Refunds are not provided for cancellations the day before or absences on the day of the program. Substitutions are welcome at anytime.