High Risk Transaction Case Studies

Why Should You Attend:

This webinar will focus on a series of appraisal review problems specific to high risk transactions, as defined by the regulations. Each case study will provide greater insight into bidding, engagement, and review issues that can arise with high risk transactions. The session will include an introduction to HVCRE loans, as defined under Basel III. It will also discuss complications to the appraisal assignment and the appraiser bidding/engagement process created by high risk transactions.

Level: Intermediate - some understanding of/exposure to your financial institution’s appraisal function would be beneficial.

Learning Objectives:

• Learn how the Interagency Appraisal and Evaluation Guidelines define HRTs (high risk transactions)
• Best practices for checking your bank transaction risk process
• Ideas for improving your bank’s process for assessing and handling HRTs
• In addition to the specific issues that create HRTs, learn the non-transaction issues that the regulations state will enhance risk to an institution
• Learn the regulatory impact of a HCRE transaction and the limited exemptions for ADC loans to escape this designation
• Get real word tips for handling high risk transactions within the appraisal function

Areas Covered in the Webinar:

• Situations and transaction specifics that increase the risk to your institution, as defined by the regulators
• Tips for creating a risk-based appraisal program for your bank
• Includes an introduction to HVCRE loans, as defined under Basel III
• Complications to the appraisal assignment and the appraiser bidding/engagement process created by high risk transactions
• Short case studies of specific property types that create higher risk to the institution
• Summary of review issues for high risk transactions

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
• 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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