Appraisal Function: What Many Banks Get Wrong

Why Should You Attend:

This webinar is the culmination of a bank regulatory consultant’s interaction with financial institutions around the country: questions asked, situations of concern, problems faced. In many cases, the problems and issues are the result of an appraisal function that is not compliant with the more crucial aspects of the regulatory guidance. This webinar will help attendees learn from these mistakes.

The program will also examine why commitment to an effective appraisal function must start at the top and be appropriately integrated into the entire lending function and credit side oversight.

Learning Objectives:

• Learn why independence issues are crucial to a regulatory compliant appraisal function
• Examine property types and loan structures that require added appraisal function expertise and inter-departmental coordination
• Examine valuation alternatives for existing credits: risk-based decision tree superior to a set of rigid requirements
• Learn the importance of appraisal-related training for appraisal function personnel
• Examine interaction patterns with appraisers: what is beneficial and what is detrimental
• Learn the regulatory requirement for an ongoing monitoring function

Areas Covered in the Webinar:

• Focus on the most important elements of the appraisal regulations that foster safety and soundness and improves the institutions’ regulatory compliance
• Best practices for integration of the Interagency Appraisal and Evaluation Guidelines into an institution’s appraisal policy and practices
• When it comes to the appraisal function, knowing what not to do is as important as knowing what to do
• Customization is possible: ways to implement a regulatory compliant appraisal function specific to your corporate culture, asset size, and footprint
• Outline and stress the importance of a risk-based decision process within the appraisal function that is uninfluenced by other departments
• Commitment to an effective appraisal function must start at the top and be appropriately integrated into the entire lending function and credit side oversight

Who Will Benefit:

• CEOs and presidents of community banks
• Credit administration officers
• Chief appraisers/appraisal function managers
• Credit officers involved in the appraisal function
• Credit reviewers and other credit side personnel
• Lending group managers
• Employees tasked with elements of the appraisal function

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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