Understanding Appraisals and Appraisal Review Concepts for Lenders

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.

Learning Objectives:

• Gain insight into the appraisal process: a general understanding of what appraisers can and cannot do
• Learn how the regulators view the appraisal selection process and the review process
• Learn what the regulators expect of appraisal reviewers
• Learn basic review mechanics and the dos 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

Areas Covered in the Webinar:

• The defined terms and a specific process in the appraisal industry that appraisers must follow
• Economics of real estate markets: the impact of the principles 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
• 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
• Employees who bid and engage appraisers for the bank
• Employees who review commercial appraisal

Heidi Lee
Bank Consultant and Review Appraiser, Appraisal Review and Consultation

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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