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Commercial Appraisal Review - Focus on the Tough Ones

Wednesday, 08 August 2018   11:30 AM PDT, 02:30 PM EDT

Training Duration = 90 min                  Sponsored by Online Compliance Panel

Click Here to register $200.00

Click Here to register and receive CD recording $400.00

This webinar examines the problems that can arise in the valuation and appraisal review of some of the more complex and challenging commercial property types. Greater insight into the appraisal review process, as it differs for each of the complex property types, is provided.

 This is a more advanced level webinar that assumes the attendees have education, exposure, and experience with the general appraisal process and typical expectations of reviewers when reviewing a commercial appraisal report.

Learning Objectives:

  • Provides key terms and definitions for the various elements of complex property type operation and valuation
  • Examines the operational processes of property types that sell as a going concern
  • Discusses risk to the institution of different methods for measuring and deducting intangible assets that can have an impact on the real estate value component of properties that sell as going concerns
  • Examines the regulatory constraints that apply for the appraisal and review of complex property types
  • Examines relevant approaches to value for each property type and how those methods differ in their application from the valuation of less complex property types

Why Should You Attend:

  • The interagency appraisal and evaluation guidelines require banks to ensure appraisal quality and review each appraisal report prior to the final credit decision
  • The regulations additionally mandate that all reviewers have specific competency to review each specific appraisal report he/she is assigned
  • Reviewer competency is a combination of education, expertise, and proficiency
  • Reviewers given appraisals of complex properties to review must therefore first be educated on how the valuation of such properties differs from a non-complex property
  • Many of these complex property types are high-value properties with associated large loan amounts. Deficiencies in reviewer understanding is more likely to increase the operational risk of the institution (impair safety and soundness) than loans collateralized by less complex property types

Areas Covered

Review of hotel appraisal reports
Review of restaurant appraisal reports
Review of convenience stores (c-stores) and truck stop appraisal reports
Review of mixed-use property appraisal reports

Instructor

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.