Appraisal Reviews: What to Look For

A key element of any loan decision is a sound appraisal that truly depicts the market valuation at the time of the loan. Both safety & soundness examiners and compliance examiners are carefully scrutinizing your appraisal procedures – from policies, to procedures, to independent ordering of appraisals, to appraisal reviews and more. Are your policies and procedures up to date? How will your procedures stack up to the examiners’ expectations?

It is essential that financial institution employ effective, independent appraisal and evaluation processes within the lending function. Appraisers engaged to conduct appraisals and evaluations should have the knowledge and expertise to perform reviews in accordance with regulatory guidance and sound banking standards. Appraisals need to be independently assessed to ensure the quality is commensurate with the complexity of the subject property and risk of the transaction.

In this session we will review a sample residential loan appraisal and identify what you need to look for and what may cause you concern. We will guide you through a sample written policy, procedures, and sample checklists, and discuss the good, the bad and the ugly we have seen in appraisals.

Covered Topics

  • Understand the appraisal rule requirements and thresholds
  • Learn examiner expectations for your appraisal policy and review process
  • Distinguish when a full appraisal is required versus an evaluation
  • Implement a strong appraisal review process for real estate appraisals
  • Utilize provided tools to thoroughly review a real estate appraisal

Who Should Attend?

This informative session is designed for appraisal review staff, lenders, loan staff, Compliance Officers, and Auditors.