Financial institutions must routinely estimate probable loan losses for accounting and regulatory purposes, but inadequate appraisal management practices and procedures can result in inaccurate loss estimates.
Background
Appraisals have taken on renewed importance since the subprime credit crisis, especially considering the new regulations from the Dodd-Frank Financial Reform Act. To enforce these new regulations, examiners are closely reviewing appraisals to verify appraiser independence and ethics, and to ensure that institutions have valid updated appraisals to support workout programs - both important factors in maintaining safety and soundness through a strong credit risk management function.
It is imperative for you to evaluate current appraisal management practices and procedures to ensure you are offering strong risk management coverage during these challenging economic times. Procedures should emphasize quality controls for appraisals used in loan originations. Procedures should also address when appraisals need to be updated to comply with GAAP and regulatory requirements in support of loan reviews, workout programs and allowance for loan and lease loss estimates.
LexisNexis Sheshunoff has designed this webinar to outline appraisal procedures and suggest best practices to help you update and enhance your current procedures and effectively manage your institution’s credit risks.
Agenda
• Understanding the potential adverse impact of current issues facing the appraisal industry
o AMCs and pressures on independence
o Fees
o Competency
o Client Confidentiality
o Fraud
• Methods to ensure appraisal quality control
• Methods to adequately monitor collateral values
Benefits
• Identifying potential risks to opinions of value received from appraisers
• Improving your use of appraisals in lending decisions
• Resetting your appraisal objectives and responsibilities to better manage collateral value risks
• Improving loan loss estimates through appraisal management controls
Who Should Attend
• Appraisal Managers
• In House Appraisers
• Loan Review Officers
• Credit Managers
• Credit Analysts
• Appraisal Management Company Management
• Third Party Vendor Compliance Managers