This webinar provides guidance on critical evaluation preparation issues that can help institutions to select and train employees to prepare residential real estate evaluations. In addition, the material discussed during the webinar can assist institutions with developing evaluation standards and a quality review program to minimize risks related to making lending collateral decisions based on residential real estate transactions at or below the appraisal exemption threshold. During the presentation, we’ll address, step-by-step, how to complete an evaluation of residential real estate to comply with regulatory guidance. Attendees will also receive handout materials to assist them with preparing evaluations of residential real estate collateral with transaction values of $250,000 or below.
The threshold for residential real estate loans requiring an independent appraisal is based on the residential property transaction value. If the transaction value is over $250,000, then an appraisal is required. If a residential property transaction value is $250,000 or less, then a residential real estate evaluation can be used to support the portfolio loan decision. Unlike appraisals, evaluations don’t have to be performed by a licensed or certified appraiser. In fact, anyone that can comply with the Federal banking agency’s 2010 Interagency Appraisal and Evaluation Guidelines can prepare an evaluation.
The alternative of evaluations is unique to the banking agencies, so those choosing to prepare evaluations either must typically gain practical experience working in a financial institution’s lending function or take appraiser training courses. Complicating the evaluator selection process further, a person well qualified to prepare an evaluation would typically be an appraiser. Yet licensed or certified appraisers must prepare a restricted appraisal report with additional information to comply with both the Uniform Standards of Professional Appraisal Practice (USPAP) AND the 2010 Interagency Appraisal and Evaluation Guidelines.
Together, the interagency guidelines and the USPAP reflect how the banking regulators are holding institutions to a high standard that requires detailed insight into how to prepare a residential real estate evaluation that can also pass a quality review program.
Please join Gary Deutsch as he shows you, step by step, how to prepare a residential real estate evaluation.
WHAT YOU’LL LEARNUsing sources of industry guidance when preparing evaluations Selecting residential real estate evaluation preparers Deciding on an evaluation preparation and reporting approach Ensuring an evaluation meets regulatory quality standards Applying professional standards to evaluations Specific steps to take to prepare an evaluation Report content and formats to use AND MUCH MORE!
YOUR CONFERENCE LEADER
Your conference leader for "Preparing a Residential Real Estate Evaluation, Step-by-Step, in a Format You Can Use” is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC.
Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region.