CRE Appraisals: Regulations and the Review Process
For about 30 years, financial professionals have worked under multiple sets of rules and guidelines concerning the ordering and reviewing of appraisals. These include the December 2010 Interagency Appraisal and Evaluation Guidelines, the October 2018 Frequently Asked Questions on the Appraisal Regulations, and the Interagency Appraisal and Evaluation Guidelines. Appraisers have worked under the Uniform Standards of Appraisal Practice (USPAP) for even longer.
This program provides a concise overview of the various rules and guidelines, plus key nuances that have created differences among the approaches taken by financial institutions and endorsed or supported by their regulators. Because they are guidelines, not regulations with absolute deadlines, there is discretion in how regulators apply various features.
Do you know the key factors that drive discretion? What are some tips and traps for handling review outcomes? Can your institution have different levels or types of reviews for commercial properties? What key factors drive how to set the different levels?
