Upload
cos-opr
View
222
Download
1
Embed Size (px)
DESCRIPTION
Lance
Citation preview
ANEVAR International Conference
The Role of Appraisal Reviewers in the U.S.
M. Lance Coyle, MAI, SRAAppraisal Institute President
Sept. 9, 2015
Dodd-Frank Legislation
Massive financial system reform legislation passed in
2010 / response to financial crisis of 2008
Institutionalized Appraisal Management Companies
Established requirements for review of all appraisals
prepared for regulated lending activities
Value Added
• Value of the appraisal review function
• Subject of the review
• Work file
Value Added
• Purpose of reviews
• U.S. lending institutions
• Mortgage insurers
Value Added
• Common issues
• Successful reviewers
• Quality control
• Eligible to prepare reviews
Credibility Added
• Reinforce confidence
• Appraisal process vs. the appraisal review process
• Competency issues• Geographic
• Sector
• Technical
• Effective date issues• Time of report
• Time of review
The Reviewer’s Toolbox
• IAG, FDIL, ECOA, Reg B, FNMA, ALLL, FASB
• Yellow Book and Just Compensation
• IRS
• Other standards
• Green construction
• LEEDS
• Historic preservation & easements
• TIF & Abatement
• Litigation precedents
Multi-faceted Thinker
• The review appraiser excels:oMental math
oCustom analysis
oReasonableness tests
o Technology
• Working parts of real estate sectors
• Urban economist
Inner Conflicts
• Balance vs. bias
• New and unfamiliar methods
• Collaboration vs. intimidation
• The challenge of 2n
ASC and Reviewers
• Who are they?
• ASC Statement 5
• Reciprocity and limitations
• State enforcement• Consistency vs. arbitrariness
• Local appraiser culture
• Impact on banks• Challenges
• Work-arounds
Technical Talk – Transaction Control
• The moment of maximum control• Before you place the order• Establishing appraisal parameters
• The pre-flight• Clear understanding• Setting expectations• Structural problems
Technical Talk – Reviews
• Tests of ReasonablenessoComparable salesoBracketingoThe best metrics
• ErrorsoMagnitudeoCounterpoint
Appraisal Institute Review Designations
ANEVAR International Conference
The Role of Appraisal Reviewers in the U.S.
M. Lance Coyle, MAI, SRAAppraisal Institute President
Sept. 9, 2015