2025 Commercial & Residential Appraisals: Regulations and the Review Process

Learn the fundamental principles of the appraisal process, with a focus on reviewing the report for integration into overall underwriting. The class will also provide an overview of the 2010 Interagency Appraisal and Evaluation Guidelines, the 2018 FAQs on Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines, with tips for integrating them into your existing policies, plus other practical issues that banks face.

INSTRUCTOR: 

Richard Hamm


HIGHLIGHTS OF THIS PROGRAM:

• Why review appraisals? Beyond regulatory requirements
• Current guidelines 
  • FIRREA and the five minimum standards
  • Latest appraisal guidelines issued in 2010 and 2018 FAQs
  • Recent updates to minimum dollar requirements and greater screening for USPAP compliance
  • Why banking guidelines are more focused on commercial real estate (CRE)
• Issues with residential appraisals
  • Dominance of market approach and comps, including adjustments and bracketing
  • Increasing attention to condition of neighborhood and site
  • Residential-specific regulatory issues, including:
    • Home Valuation Code of Conduct (HVCC)
    • Uniform Mortgage Data Program (UMDP) and the related Uniform Appraisal Dataset (UAD)
    • American National Standards Institute (ANSI) guidelines for determining square footage o Examples of review forms 
• Issues with commercial appraisals
  • Multiple levels of review to consider (sample checklists included)
    • Administrative/compliance review
    • Technical/internal review 
  • Types of appraisals by scope o Types of appraisals by format
  • Assumptions and limiting conditions
  • Property identification and ownership interest
  • Third-party or outsourced review and USPAP Standard 3
  • Approaches to value
    • How the cost approach works
    • Direct capitalization method for the income approach
    • Sales comparison or market approach 
  • Outcomes: When to request revisions
  • Using your analysis to validate existing or older appraisals and documenting your conclusions
  • Brief overview of guidelines for evaluations when an appraisal is not required 

INSTRUCTOR INFO: 
Richard Hamm has been training bankers for more than 30 years, including both creating and teaching courses for the American Bankers Association (ABA) and the Risk Management Association (RMA), plus regional banking schools (Graduate School of Banking – Wisconsin, Graduate School of Banking at Colorado, Southwestern Graduate School of Banking and Barret School of Banking – Memphis), numerous state banking and community banking associations and individual banks.