This product is a recording of the Appraisal Institute webinar that was conducted on January 18, 2019.
Once the Appraisal Institute confirms your payment, you will receive an e-mail containing a link to the webinar recording.
Please note: The interactive features of the webinar (e.g. poll/survey questions and the final evaluation) are NOT available in the recording. Appraisal Institute continuing education credit is NOT available for viewing the recording.
The New Frontier: Marriage of Appraisal Review and Validation Stress Testing
Date: January 18, 2019
The range of valuation needs within financial institutions is wide-ranging, especially for portfolio monitoring and loan renewals and modifications. Traditional single point in time valuation estimates – whether appraisals or evaluations – may not answer the most important questions asked by the customer (lenders/banks), limiting the usefulness of the services being performed. The U.S. real estate market is late in its cycle, with growing concerns about price pressure in commercial real estate. At the same time, recent guidance released by bank regulators confirms a potential limitless useful life for appraisals and evaluations already in file. This convergence of activity is likely to increase the demand for validations in the near and long term.
In this webinar, you will understand:
- Bank examiner expectations for the useful life of appraisals and evaluations and validation processes and procedures.
- How valuation needs vary for financial institutions in portfolio monitoring and loan renewals.
- Best practices for supporting CRE relational values. For example, is the property worth “at least” $xyz?
- How to marry appraisal review procedures with relational value concepts to support validation processes.
Douglas A. Potts, MAI, AI-GRS, Vice President, Chief Appraiser, Commerce Bank, FED/FDIC/OCC
Robert L. Parson, MAI, President and CEO of Valuation Management Compliance LLC.